Wow! Now that's a buncha responses...

Let's see...
* Nix:
Glad you're keen on the idea.

Ideally I'd like to keep it really, really simple - at least for the first go-round. Know what I mean? Maybe some day there could be more options for combo info, coding your own AI to fight against, etc.
* Toom:
'Sup Toom. Definitely going for a standalone fighting game with unnaturally far-reaching customization.
Theoretically, I'd like people to be able to say: "Hey, grab this zip file with my characters in it!" or "Here are some versions of Mortal Kombat characters I made for this." etc.
Sort of like how you could create your own characters for Free Lunch's tower game way back in the day. Blanking on the name, which I know is shameful. SORRY.

* Jesse: Glad you're liking the sprites. That was really the biggest question in my post - essentially I was wondering if I was dreaming about anyone being interested in a game with graphics like those sprites I provided.
IE: Badly done sprites that look all weird.

I was thinking attacks would be handled by the game loading up the info from the text files, which would then assign power levels to attacks, defense, speed, etc.
Ideally, the game would know you only get a certain number of points.
Let's say the number cap is 100.
If you gave your character 100 punch strength, 100 kick strength, etc. it would read that as "100 used up by punch, so all below are ignored and considered zero."
Know what I mean?
* shig: I have my fingers crossed as well. I am not a programmer, but I am working with one. I'm more of the idea/website/paying-for-advertising/story/sometimes-bad-pixel-art guy.
* Toom: WHAT? YOU AGAIN?

I agree with everything you said. See above, etc.