Hey! Make sure you click the Solved button near the bottom of the topic if you're finished! Also, this sort of info should be explained in the mugendocs and whatnot.
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Version 1.0 RC1
22 Sep 2009
Engine Changes
Added high-definition (HD) graphical support.
Any arbitrary resolution or aspect ratio can be set. For best compatibility, we recommend using 640x480, 1280x720 or 1920x1080.
1280x720 set as the new default resolution. This can be changed with the GameWidth and GameHeight parameters in mugen.cfg.
Characters' target resolution can be set with the localcoord parameter in the character def file. An alternative, which affects sprites only, is to set smaller xscale and yscale parameters in the constants section of a character's CNS files.
Stages' target resolution can also be set with the localcoord parameter in the stage def file.
Characters, stages and motifs made for different resolutions can still interoperate with each other.
Added localization support.
Preferred language can be set in mugen.cfg
Added sound and text support to storyboards.
New sprite file format: SFF v2.
Multiple palette support.
Support for realtime compressed sprites to reduce memory usage.
New format for FNT.
Bitmap fonts now based on SFF v2.
Supports Truetype fonts.
UTF-8 text support (Truetype only).
Text can be quoted in order to use escape sequences, e.g. \n for a line break: "line1\nline2"
CNS: New triggers.
AILevel: returns the AI difficulty setting.
CNS: Added [Quotes] group to constants.
CNS: New controllers.
VictoryQuote: Selects a quote for the victory screen.
Stages: StageInfo: New parameters:
xscale, yscale: Specifies the drawing scale of the stage.
overdrawhigh, overdrawlow: Specifies the number of pixels of extra drawing beyond the top and bottom of the screen.
cuthigh, cutlow: Suggests the number of pixels that can be cut from the top and bottom of the screen when playing in a shorter game aspect than the stage was designed for. cutlow especially will be useful for making 4:3 stages look better when viewed in 16:9.
Motifs: Victory screen definition can be added to system.def. See [Victory Screen] and [VictoryBG] groups.
Characters may use sprite 9000,2 for the victory screen.
Motifs: system.def and fight.def font parameters standardized to take alignment and RGB color values. See font notes at end of fight.def.
Motifs: common1.cns can now be included with motifs.
Motifs: system.def: [VS Screen]: For consistency, changed pX.pos and pX.name.pos to pX.offset and pX.name.offset (.pos is deprecated but will still work).
Storyboards: Added sound playback and text display capability.
This is just some update history, but the point is your question is simple enough that it can be googled and found out on elecbyte.com. Try that so you're not filling the board with every single thing you come across that you don't understand if it's as simple as this one.
Also, it should ONLY be used for the victory screen, but some screenpack creators aren't considerate in this sense.