After some more testing, found out why there were gaps in the rows. Apparently, the characters I downloaded were not compatible with Mugen 1.0. That's why there was no character there, leaving gaps. Deleting those characters now and will upload another screenshot.
EDIT: Turns out, the gaps were because some folders were not properly labeled. Here's an updated screenshot:
The boxes showing who I picked (portraits) are hardly visible, so that's a minor problem for me. But, this could be attributed to my laziness of not putting the characters on defined rows. I just deleted all the row info and entered the characters.