Not bad, but a few issues as well.
I have to admit your use the sprites was superb. It was fluid enough to make it entertaining just like MK vs SF.
During the talking in the beginning you should of put in a soft audio track to set the mood. And I would of personally done something other then metal for the actual fight, maybe use metal to deliver the final blow but it needs to set a mood, which I feel the movie was lacking.
I would of edited the sprites to have them match the lighting of the room a little better, it's not really that difficult to do usually you can eye ball it.
As a submission in total it was very solid and I definitely don't regret watching it. It definitely belongs on the portal and was indeed entertaining to watch.
The 8 weeks of work you put into this flash submission was time well spent, I would like to see you work on setting the mood better so the fights are more enjoyable. Think of SFvsMK when chameleon is fighting Akuma. You feel energized and pumped up from the soundtrack it provides. Now, I don't think you should copy his style with animation in total but I believe you have the potential to make flash quality just as good as proxide himself.