**100% WORKS**
Okay you gotta finish arcade mode... You CAN change the difficulty to 1 star and you CAN change character when you`ve been defeated BUT DO NOT CHANGE ANY DIPSWITCH`S. Other than that the only trouble i had was on the last boss (Gill) But after 7 or 8 tries i got it after swapping from Ryu to Akuma and spammed QCF+punch and QCB+kick mix in afew flying kicks and you`ll eventually get there...
Hope this helps and clears afew things up...
Good luck!