That is.... Strange. I'll try testing with different stages... Because the color of the BG in the stage might be what's making it look like that. If that's the case, I'm a dork:
FrantzX Edit: YAY
Dunno what's up with the screenshot though with all that white. It looks fine in-game...
FrantzX Edit: I did not check how shadows work with the screenshot system. It will be fixed.
On a related note, I got this error while trying to use Caddie's CvS2 training stage:
Spoiler, click to toggle visibiltyFrantzX Edit: That stage uses VERY large sprites. Large enough, that your videocard cannot create a texture of that size. There is a way to fix that for xnaMugen, but I'm not going to rewrite that much code for quite some time.