Well, you didn't do anything wrong Safari Al...there's just no Right Results coming out of the availabe converter right now, cause it always gives BUGGY results....I haven't heard from anyone that has gotten 100% accurate character translations out of it...don't you think there would already be Fan made Custom Game Paks available out there like flies on turd? There aren't, cause the converter is not accurate...Sure it'll display your converted character over on your PSP in MOST cases, but if you look again, their moves are retarded!!!
Let's face it people...until we get a converter that actually fixes all these bugs (way too much hits and damage + pointless extra fireballs) Mugen is still very crappy on PSP.
So to those who are new to homebrew, don't expect nothing special from the available Mugen ports...you will waste your time and end up being very very dissapointed.