Get your man outside the ring and pick up the steel chair to beat up any harder Fighters that you are having trouble with. This should help you to get further. When you are about to go into a joystick waggling battle, follow these steps:
Place the chair outside the ring (next to the bottom left turn buckle) just up a bit. Now jump into the ring and you should have the chair. Climb up on to a corner post, and instead of jumping into the ring, jump the other way. Weird gravity!
During a two player practice game, get 1 player to climb onto the top of the top left turnbuckle, then get player two to be as close as possible to him. Player two should drop and kick the player, then he will turn into a "ghost". He can pick up the chair and take it into the ring. Press escape then compete for the title, and the chair will still be there.