1. Versus mode is strictly for 2 human players, but in Watch mode, you can choose your characters and fight against the cpu. Right before the match starts, press ctrl 1 to control player 1's characters. If you have more than 1 character on that side, you have to do it whenever you start a round with a new character.
2. I think there are tutorials for arcade order. I'll try to see if I can find any. Videos between every fight sadly isn't possible if I'm not mistaken. There are ways to make intros and endings, but I think that's it. I don't know how to make those either.
3. Are you referring to palettes? If so, then try to follow these steps:
Step A. Download your palettes
Step B. Put them in the character folder of the character you have the palettes for (For example, let's say you got some palettes for Ryu. Put those palettes in the Ryu character folder. {Sometimes characters have a folder for palettes inside, so you can put them there too.
Step C. Just like installing a character in the select file for Mugen, install the palettes by typing them in the def file [Look in the character's def file until you see "pal 1 = blahblahblah.act. Your character should usually only have 12 palettes available at a time. act files are the palette files, so write the name of the palettes you want to install. For example, if you palette is called "Basic," write pal 2 = Basic.act. If there is a palette you don't want, you can replace it with another by writing a different name. So if you wanted to replace a pal with Basic, just write it on the line like usual]
Step D. Save your changes to the def file and open Mugen. BEFORE entering battle, you should know that every attack button corresponds to a palette. Usually...
Pal 1 = A button
Pal 2 = B
Pal 3 = C
Pal 4 = X
Pal 5 = Y
Pal 6 = Z
Pal 7 = Hold Start and A
Pal 8 = Start and B
Pal 9 = Start and C
Pal 10 = Start and X
Pal 11 = Start and Y
Pal 12 = Start and Z
Sorry if this sounds complicated. I'm bad at explaining things. If you have any more questions, I'll try to answer. Best of luck to you.
Edit: Oops, looks like someone beat me to the punch. Thanks, SSBK.
You find out how to place characters in order by numbers here: http://mugen.wikia.com/wiki/Order. Adding videos or animations, download Fighter Factory and get or create your own.
In Vs Mode after selecting the chars & stage : for 1p vs 2p go to VS mode to play with a friend and for 1p vs pc press ctrl+1 as the match starts to take control of CPU1 and you can fight the AI in Watch Mode.
Colors, or palettes as they're actually called are mapped to the main keys on the keyboard when selecting a character I'll use this chart as an example showing Beal's colors, with S meaning that you have to press both the start key and the previous key to use that palette. It all depends on how many pals a char has in thier folder.
A.H.Hardy reacted to Scrombo in some general questions for a new commer