Thanks for all the help.
I was just under the assumption that characters were unlocked by story mode because once i obtained them, they didn't disappear when i quit the game and restarted. Hence why i thought these things were saved.
It probably had something to do with the bug that made me a "3rd Place Champion" a while back. My rank was increasing while i played storymode. Ah well.
I do play against people online, but i don't know whether it's lag or because i'm against a VIP... but i deal like 0 damage all the time. Even when i've clearly hit them twice with 2x 20+ hit shinku's with Ryu, their health would still be on full... :Oo:
Edited By Slipmatt001 on 1102782570