Well Done!
I see what you mean about my advice being dated! This is a great deal improved from your first movie, and your sprites and animations look so much better than before. I don't know why I thought that movie was your only thing on NG, guess I was too tired from just waking up to notice o.O
Anyway, on to the review: I really like the concept of this fight, and the fact that you really do have to use your limited resources wisely and fight smart to win. His machine-gun spamming took me by surprise the first time around and he killed me the moment I ran out of mp, but I got him the second time around. Personally I think the difficulty factor you put into play is spot-on.
Thanks for putting up his stats for us to look at, too. Didn't use them for the fights, but when I checked them out afterward, I noticed that his HP Recovery is very messed up compared to Sonic's Recoveries and MS's MP recovery. Every time he recovers HP, he'll lose at least 300 MP in the net equation, because the max he can recover is only 500 whereas it costs him 800. His MP recovery is fine, though, because it costs 600 and his base HP Recovery is 600, so he gains 0-200 net HP.
I pointed this out because with knowledge of this, it is far easier to let MS kill himself with his own recoveries than to do it yourself, which I noticed in my second playthrough. I only hit him with maybe 3-5 normal attacks and 4 magic attacks the entire bout, and he was dead. All the other turns were recover-fests on both of our parts. Which would be fine, if only MS received the same net gains as Sonic does during alternation of recoveries.
If you meant for that to MS's achilles' heel, then nevermind and good job. If not, I would change his MP cost for HP recovery to 500, which still gives him a net loss 0-200 MP, or even a cost of 300 MP to give him a net gain of 0-200 MP, similar to the HP net gain 0-200 he gets from MP recovery. Doing the latter would certainly up the difficulty to much higher level, maybe too much, but it would be a lot more of a challenge to defeat him and lessen the chances of lucky victories.
Now that that's out of the way, I was thinking you could add a "counter" option to the character's movelists. A succesful counter could cost maybe 200HP & 100MP (for Sonic), and stop the attacker, damaging them instead. Obviously if your opponent recovers instead attacks when you try to counter, you just wasted a turn, some points, & they got some. This would make it a risky manouver, but would be well worth it if you managed to counter a highly damaging magic attack.
You could have plenty of fun with the animations for counters, too. I can just see Sonic trying to attack MS, he counters by grabbing his foot, and throws him at the ground, bouncing him back to his spot on his left. XD
Now I think I'll go watch your other vids.