Well, it's not finished yet. Right now I'm working on the entities engine (To handle the navis or enemies). Once I finish that, I will add attacks to each entity.
The last thing I will add is the chip screen.
Nope, before making this I tried to do a top-down roguelike but I got problems making the map(Mostly the camera and the 8 bit autotile).
If I can complete the engine, then the next step is to make something similar to tournament mode(Like mmbn 4 or 4.5)
Well, megaman vs street fighter is an official fan game and I haven't seen news about capcom sending "cease and desist" on megaman fan game's projects(In fact, the projects die because the developers doesn't want to give more support.)
However, it's up to Smilebasic's moderators to judge if the game should be shut down.