Beat red in mt silver and Steven stone will be in silph co.
Something that everyone if forgetting to say is....Do you remember the girl in saffron city that looses her girl. She is the copycat doll. I belive you have to beat red before doing this but when you talk to her she tells you about her doll. Then go to vermillion city fan club and talk to a guy thats next to a clefary doll. He gives you the doll. Then leave the club and steven comes out and gives you red/blue orb. That gets you latios/as depending on your game AND the ability to cath groudon/kyogre. After that go to silph scope and he gives you the option of wich starte to get. Happy Gamining
Of his hp remains, then use embargo and finish him, trhen snorlax will be sent out to get rid of you, send out your renewed ho-oh an use sacred fire, it has an 80% chance of burning the enemy,so that snorlax dies from burn or hail, after this, lapras, send out mewtwo again and, like before, use amnesia 3 times, then use drain punch till 1/2 lapras hp is left, use embargo and finish him with drain punch, then charizard, end out ho-oh an use Ancientpower, charizard will either die from hail, recoil (if he uses flare blitz) or by ancientpower, finally, venusaur is sent out, kill him with sacred fire (if ho-oh is out) or psychic(if mewtwo is out) and... WALA! You've beaten the most powerful trainer in the game, after this, enjoy your money an prizes, such as the new starters.
To beat red bring at least 2 or 3 max revives, a bunch of max potions and full restores, your starter pokemon at lvl 64, latios, mewtwo who knows embargo, psychic and drain punch, ho-oh lvl 71, lugia lvl 65 and snorlax. First he'll send out Pikachu, it is important to note that latios MUST BE SENT OUT FIRST, protect yourself as many as you can until latios is beaten, then send out your starter, Pikachu will be forced to use volt tackle, as it'll kill your pokémon but will deal a cosiderable amount of recoil damage, but don't worry, sacrifices are the key to this almost guaranteed strategy, after this send out ho-oh to sacrifice it, pikachu will die either of recoil or hail damage, then he'll send out a blastoise, send out snorlax, just after both of you sent out your pokemon use a max revive on ho-oh, JUST ON HIM, if blastoise gets rid of your snorlax send out mewtwo, if he doesn't, attack him with rock climb, after sending out mewtwo, use Amnesia 3 times, it's useful, as hydro cannon (blastoise´s most powerful move) deals about 40-50 hp damage and mewtwo has 224 hp, use a max potion or full restore if blastoise froze him with blizzard, after it, use psychic till between 1/2
Nothing to do with the original question, but you don't get the red/blue orb from steven, you get it from mr pokemon (same guy who gives you the mystery egg)
You can get Mudkip from Steven Stone after beating Red at Mt. Silver.