Hey, not bad....
I like the idea. The game is buggy as fuck, though. And I mean buggy as FUCK. On the other hand, if you revamped it, this would be amazing. Work on the hit detection and the movement, first of all. Don't forget about boundaries to the levels... in most battles I found myself walking straight off the screen into God knows where. Walking off the screen after every fight, just so I could come back and fight the guy again, was a pain, too. Maybe you could work on it a bit, and resubmit another version? Give it a plot, a couple more characters (Psylocke vs Felicia, yum yum), throw in some finishing moves for good measure, stuff like that?