M.U.G.E.N 2D fighting game engine created by Elecbyte that lets you create your own characters and stages. Oriented more towards flexibility, making characters with M.U.G.E.N may initially seem a daunting task, but once you understand the basics, learning the rest of the tricks should come naturally. You can control almost every aspect of the engine to suit your tastes. That's the primary goal of MUGEN. Since this is a work in progress, there are many things that it can and cannot do, but here's a short list of some of the things you can do...
Customizable title and select screens, life and power bars, game sound effects, and fonts. Characters can have any number of sounds and sprites of any size.
http://www.elecbyte.com is no longer there.
You can download WinMugen here.
WinMugen