I just fixed the crash and the options menu, I'll be putting out a new build shortly. If you have any more information on the bug regarding not being able to control your character in VS mode, that would be excellent! Are you sure you didn't make two CPUs fight each other?
Viewing post in I found some bugs
If you don't assign any controllers to either side on the Character Select screen ( press A button or J key without moving any of the controllers to any side), then you are allowed to make 2 CPUs fight each other. Their AI isn't actually programmed yet, so they'll just stare at each other until the timer goes down (you can still pause by holding Esc.)