Well it's not horrible.
Not the greatest animation there is. You made it rather short, and the surrounding environment just looks like a Paintbrush-drawn POS.
I say you did well manipulating the sprites. I think you should you concentrate on possibly using some more of them in such a "training session" or whatever you choose to make. Make some more fluent and better looking backgrounds, and also have the movies be longer. You could have something more than decent.
And good choice for a fight song in Ill Nino. Pick out some more good ones like that in the future. :)