Hmm.....I thought I read in the instruction manual that Kung-Lao is the descendant of the original tournament champion, who was also named Kung Lao (who lost to Goro, allowing Shang Tsung to seize control of the Tournament). Oh well, minor technicallity.
Anyways, Kung Lao is the best...him and Sub-Zero. I fight the best with Kabal (MK3), but I didn't really care for him as a character.