To a completely inexperienced user the default system.def is almost worthless.

It doesn't explain how fonts work, it doesn't explain where the coordinate 0,0 is on the screen, it doesn't explain how windows work and it assumes the user already knows the basics about stage creation.

;----------------------------
;Title background definition
[TitleBGdef]
bgclearcolor = 0,0,0

[TitleBG Background Top]
type  = normal
spriteno = 100,0
layerno = 0
start = 0,0
tile  = 1,1
velocity = -1, -1
window = 0,0, 1279,334

[TitleBG Background Middle]
type  = normal
spriteno = 100,1
layerno = 0
start = 0,0
tile  = 1,1
velocity = -1, -1
window = 0,335, 1279,631

[TitleBG Background Bottom]
type  = normal
spriteno = 100,0
layerno = 0
start = 0,0
tile  = 1,1
velocity = -1, -1
window = 0,632, 1279,959

[TitleBG 1]
type  = normal
spriteno = 100,0
layerno = 0
start = 0,0
tile  = 1,1
velocity = -1, -1
window = 0,332, 1279,334
trans = add1

[TitleBG 2]
type  = normal
spriteno = 100,0
layerno = 0
start = 0,0
tile  = 1,1
velocity = -1, -1
window = 0,632, 1279,634
trans = add1

[TitleBG Title Logo]
type  = normal
spriteno = 0,0
layerno = 0
start = 0,140
mask = 1

;----------------------------
[Infobox] ;(new in MUGEN 1.0)
text.font = 6,0,1

;----------------------------
[Infobox Text] ;(new in MUGEN 1.0)
Welcome to M.U.G.E.N 1.0!
_
* New to M.U.G.E.N? Read docs/mugen.html to get started.
_
* Meet the M.U.G.E.N community! Visit http://elecbyte.com/forum.
_
* To add a character, extract it into its own directory in chars/ and edit data/select.def.
* To add a stage, extract it into stages/ and edit data/select.def. Put music files inside sound/.
_
* The current motif is "mugen1". To make changes to this motif (including this text), open data/mugen1/system.def with a text editor such as Notepad.
_
* To increase then number of character slots, use the "big" motif. Change the motif line in mugen.cfg to: motif = data/big/system.def
_
* Installation instructions for motifs vary. Some require you to overwrite system files. If you do install a motif that overwrites files, you may need to change the motif line in mugen.cfg to: motif = data/system.def

;----------------------------
[ja.Infobox Text] ;(new in MUGEN 1.0)
M.U.G.E.N 1.0 をご利用いただいてありがとうございます！
_
このメッセージは、data/mugen1/system.defで編集できます。

;-------------------------------------------------------------------
;Character select definition
[Select Info]
fadein.time = 10
fadeout.time = 10
rows = 4
columns = 3
wrapping = 0              ;1 to let cursor wrap around
pos = 480,128             ;Position to draw to
showemptyboxes = 1        ;1 to show empty boxes
moveoveremptyboxes = 1    ;1 to allow cursor to move over empty boxes
cell.size = 100,100       ;x,y size of each cell (in pixels)
cell.spacing = 10         ;Space between each cell
cell.bg.spr = 150,0       ;Note: Don't use animation for cells
cell.random.spr = 151,0   ;Icon for random select (don't use animation)
cell.random.switchtime = 4;Time to wait before changing to another random portrait
p1.cursor.startcell = 0,0
p1.cursor.active.anim = 160
p1.cursor.done.spr = 161,0
p1.cursor.move.snd = 100,0
p1.cursor.done.snd = 100,1
p1.random.move.snd = 100,0
p2.cursor.startcell = 0,0
p2.cursor.active.anim = 170
p2.cursor.done.spr = 171,0
p2.cursor.blink = 0       ;1 to blink p2's cursor if overlapping p1's
p2.cursor.move.snd = 100,0
p2.cursor.done.snd = 100,1
p2.random.move.snd = 100,0
random.move.snd.cancel = 0;1 to have random move sound cancel itself when played repeatedly
stage.move.snd = 100,0
stage.done.snd = 100,1
cancel.snd = 100,2
portrait.spr = 9000,0     ;Do not change from 9000,0
portrait.offset = 0,0
portrait.scale = 1,1
title.offset = 640,38     ;Position of title (Arcade Mode, etc)
title.font = 4,0,0        ;Font of title (-1 for none)
;Big portraits
p1.face.spr = 9000,1      ;Do not change from 9000,1
p1.face.offset = 0,0      ;Position to put big portrait
p1.face.scale = 1,1
p1.face.facing = 1
p1.face.window = 0,0, 739,959
p2.face.spr = 9000,1
p2.face.offset = 1279,0
p2.face.scale = 1,1
p2.face.facing = -1
p2.face.window = 540,0, 1279,959
;Name
p1.name.offset = 50,620   ;Position to put name
p1.name.font = 3,3,1      ;Set to -1 for no display
p1.name.spacing = 15,25   ;Space between each name for players on the same team
p2.name.offset = 1230,620
p2.name.font = 3,1,-1
p2.name.spacing = -15,25
;Stage select
stage.pos = 640,700
stage.active.font = 3,0,0
stage.active2.font = 3,2  ;Second font color for blinking
stage.done.font = 3,0
;Team menu
teammenu.move.wrapping = 1
p1.teammenu.pos = 80, 130
;p1.teammenu.bg.spr =
p1.teammenu.selftitle.font = 3,3, 1
p1.teammenu.selftitle.text = "TEAM MODE"
p1.teammenu.enemytitle.font = 3,3, 1
p1.teammenu.enemytitle.text = "TEAM MODE"
p1.teammenu.move.snd = 100,0
p1.teammenu.value.snd = 100,0
p1.teammenu.done.snd = 100,1
p1.teammenu.item.offset = 0,110
p1.teammenu.item.spacing = 0,60
p1.teammenu.item.font = 3,0, 1
p1.teammenu.item.active.font = 3,3, 1
p1.teammenu.item.active2.font = 3,3, 1, 224,224,240 ;Second font color for blinking
p1.teammenu.item.cursor.offset = -30, 0
p1.teammenu.item.cursor.anim = 180
p1.teammenu.value.icon.offset = 210,1
p1.teammenu.value.icon.spr = 181,0
p1.teammenu.value.empty.icon.offset = 210,1
p1.teammenu.value.empty.icon.spr = 182,0
p1.teammenu.value.spacing = 30,0
;p2 team
p2.teammenu.pos = 1200, 130
;p2.teammenu.bg.spr =
p2.teammenu.selftitle.font = 3,1, -1
p2.teammenu.selftitle.text = "TEAM MODE"
p2.teammenu.enemytitle.font = 3,1, -1
p2.teammenu.enemytitle.text = "TEAM MODE"
p2.teammenu.move.snd = 100,0
p2.teammenu.value.snd = 100,0
p2.teammenu.done.snd = 100,1
p2.teammenu.item.offset = 0,110
p2.teammenu.item.spacing = 0,60
p2.teammenu.item.font = 3,0, -1
p2.teammenu.item.active.font = 3,1, -1
p2.teammenu.item.active2.font = 3,1, -1, 224,224,240 ;Second font color for blinking
p2.teammenu.item.cursor.offset = 30, 0
p2.teammenu.item.cursor.anim = 190
p2.teammenu.value.icon.offset = -210,1
p2.teammenu.value.icon.spr = 191,0
p2.teammenu.value.empty.icon.offset = -210,1
p2.teammenu.value.empty.icon.spr = 192,0
p2.teammenu.value.spacing = -30,0
; Debug screen element (can be used for testing fonts)
;sysexplod0.text =
;sysexplod0.font =

[Begin Action 160] ;P1 active cursor
160,6, 0,0, 1
160,5, 0,0, 1
160,4, 0,0, 1
160,3, 0,0, 1
160,2, 0,0, 1
160,1, 0,0, 1
160,0, 0,0, 1

[Begin Action 170] ;P2 active cursor
170,3, 0,0, 1
170,2, 0,0, 1
170,1, 0,0, 1
170,0, 0,0, 1
170,6, 0,0, 1
170,5, 0,0, 1
170,4, 0,0, 1

[Begin Action 180] ;P1 Team mode cursor
180,0, 0,0, 1
180,0, 3,0, 1
180,0, 6,0, 1
180,0, 9,0, 1
180,0,12,0, 1
180,0,15,0, 1
180,0,18,0, 1
180,0,21,0, 1

[Begin Action 190] ;P2 Team mode cursor
190,0, 0,0, 1
190,0,-3,0, 1
190,0,-6,0, 1
190,0,-8,0, 1
190,0,-12,0, 1
190,0,-15,0, 1
190,0,-18,0, 1
190,0,-21,0, 1

;-----------------------
;Character select screen background
[SelectBGdef]
;spr = graphics/selectbg.sff  ;Filename of sprite data

[SelectBG 0] ;Scrolling background
type  = normal
spriteno = 100,0
layerno = 0
start = 0,0
tile  = 1,1
velocity = -1, -1

[SelectBG 2.A] ;Title background
type  = normal
spriteno = 102,0
layerno = 0
start = 0, 4
delta = 0,0
tile  = 1,3
trans = sub
velocity = -1, 0

[SelectBG 2.B] ;Title background B
type  = normal
spriteno = 102,1
layerno = 0
start = 0, 4
delta = 0,0
tile  = 1,3
trans = add
velocity = -3, 0

[SelectBG 2.C] ;Title background C
type  = normal
spriteno = 102,2
layerno = 0
start = 0, 4
delta = 0,0
tile  = 1,3
trans = add
velocity = -9, 0

@JMorphMan: I know you're busy actually being out there and fighting for our country because you're damn awesome but when you get a moment can you help coordinate and add to this thread as well? Thank you!