Game name: : Spyro the Dragon
Character: A random fairy, don't think she actually has a name or anything.
Effect: Powerup
Not much to say. Just a simple kiss with a bunch of hearts animation. Turns the character red and increases his abilities. I linked to the correct time already but it's around 4:40 if the link doesn't work.
https://www.youtube.com/watch?v=cHpclaugXb0&feature=player_detailpage#t=281s
Man those early 3D PSX graphics don't quite hold up today.