Back to the drawing board.
It's a good idea, but I'm thinking the execution comes up short because you're not too experienced with Actionscript yet. A one-on-one fighting game is complex to build, even without a computer-controlled opponent.
The animation is far too limited. Characters need to move even while they're just standing idly, let alone when they jump, walk, fight, and get hurt! The fighting system needs tons of work. Lifebars would be a far better idea than a point system, and instead of a 'hitting' animation playing while you hold down a key, the character should just punch when you hit the key and play through the animation once.
There's just so much to make an effective Flash fighting game. Maybe try and look up some other fighting games on NG to get ideas.