Good for a Flash...
OK, first of all, props for doing something like this. Not many people have the guts to make a tribute to the greatest fighting game in history and even fewer have the skills necessary to come even close to what you've submitted. You did a great job for a Flash game, but as a Smash tribute, I can't feel satisfied. I understand that you have limited resources but still, making something like this sets yourself up for comparisons with the original. It's like being assigned to make Starcraft 2.
But not only that, as a Flash fighting game, it's only above average. The main problem is the lack of control and combos. It's hard to control your character and suicidal deaths occur often, forcing you to play defense. There's a problem when the best strategy is "push your opponent off the edge and spam projectiles, then use the up attack when your character jumps back onto the stage, pretty much guaranteeing a KO."
So...my suggestions are have more options (shield, roll, more attacks, grabs, grabbing the ledge) and (especially) tighter controls.
Oh, and I took a few points off for not including Ness and having Naruto characters :P.