Amazing
I was quite impressed by your first flash! At first, I thought the flash looked like it was going to be good, but was surprisingly presented with a legend! I have a feeling that if you keep this kind of stuff up, you'll be gracing front-page Newgrounds on a regular basis!
Your animation style is definitely your strongest point. While the characters were quite simple (and they were even crude at some points), the way you animated them was absolutely flawless and looked absolutely great. In fact, I feel the simple graphics gave it a charm that was refreshing and really made you pay attention to the flash more than just go, "Ooh, pretty flash effects!"
The actual premise of the flash was another slam-dunk. At first, I wasn't sure what I was getting into (the Street Fighter II select screen coupled with Super Smash Bros. music was deceiving). When I actually clicked on a selection, I thought maybe the video that was playing was a lead-in video to the actual game. Turns out your animations were quite interesting (and hilarious), and I think I prefer this over a game.
If I had to give recommendations for next time, I would definitely say to keep with this style of flash. The "battle royale" or "brawl-style" fighting flash seems very natural for you, and was definitely excellent to watch. I would love to see more flash like this, maybe a Newgrounds Battle Royale or something. I'm sure there's plenty of random beat-people-up flash you could make, even something like a "Choose-your-own-adventure" style game where you choose what happens when, and determine who wins a big brawl. Who knows?
Either way, I'm glad you made this flash, and was happy to vote/review it. I'll be watching this again soon and showing my friends. Here's a congrats to you for a great job, and hoping to see more flash in the future!