Holy ****
Wow, this is awesome. There are only 3 possible problems:
1. Not enough characters. I'm sure you've already heard this.
2. Matches take too long. This is just an opinion. I thought the characters had too much life.
3. The game was too easy. The only challenging part was convict's last level, which I beat (on the hardest difficulty) on my 2nd try. If you make a sequel, add another difficulty level for those of us who enjoy getting the crap kicked out of us.
Nevertheless, this game is incredible. Before this, I thought it was impossible to make a good fighting game in Flash. Seriously, good job.