In your mugen folder you will find a folder named chars. Add any character you download to this folder.In your mugen folder you will find a folder named data. Open this and you will find a bunch of other files. Find Select.def and open it with wordpad.You will place the name of the char in that folder. Select also contains directions on how to do this and other things. KFM (Kung Fu Man) is in there now as an example.I really don't like answering a questions that are covered in the read-me that came with mugen. You might want to read it.