Mugen, in Japanese means "infinite" but literally means "no limit". It's not "China language" (Who actually says that? It's VERY ignorant). Elecbyte used it as an acronym... but has forgotten what it stood for.
Great concept of bringing it over to DS. Would be nice to use the original mugen character packs and stuff. Also, I think that if this were to go wifi that it would be wise to create a character server balancing them all.