Team Japan vs Ryu
Snafu's Notes: The Ryu-Chun Li sex tape, as well as the Peter Sellers crash-and-burn scene from Return of the Pink Panther and using Bison's Anime Movie intro with other characters are part of my running gags and inside jokes.
Kyo Kusanagi, in his attempt to smear Ryu, discovered the infamous sex tape with him and Chun Li through a insider at Capcom's Japan HQ.
When Kyo got a hold of the tape (which was in Chun Li's posession at the time), he expected the resulting fallout to tarnish both Ryu and Chun Li.
He was wrong.
Ryu and Chun Li were slightly embarrased by the attention from the 2-hour DVD, but the tape had the exact opposite reaction: it made Ryu and Chun Li even more popular with their fans (to them, it was even more better than reading those raunchy hentai stories about them).
Ken, Guile and even Bison thought that Ryu was a prude and wouldn't know his way around a woman, while Mai, Cammy and several other female fighters thought that Chun Li was wasting her time in chasing after Ryu.
Furious, Kyo, along with his teammates Benimaru Nikaido and Goro Daimon, find Ryu in Osaka and challenges him to a 3-on-1 match. Ryu suspects that Kyo had something to do with the sex tape being released and decides to teach Kyo a lesson in ethics...and snooping around in his personal things will get you hurt.
Kyo smirks to himself, thinking that this will be one quick match. Little does he know that Ryu had mastered the Ansatsuken variant of Raidou's Skill Copy technique and used it on both Ken and Akuma (with non-lethal results on the two). Now, as in MvC1, he can switch between styles as shown by the colors of his gi.
Ryu: Strongest version (same with his other styles whenever he shifts)
Team Japan: Strongest versions.
This is basically a King of Fighters boss match, with Ryu as the boss.