The mod changing the thread title was bullshit. It is ok if they take down the links, as gbatemp rules prohibit copyrighted material to be directly linked here, but the matter of fact is that this solution DOES provide free DLC once you figure out exactly how you are supposed to patch the game. This is not the "overwrite another character" BS solution.
If anyone else is having problems using the patch, here is what I did for a physical copy of the USA version of smash (thanks to c80n):
Download patch
Put files in 0005000010144F00/patch
Load Kernel 31 (this was the thing giving me problems)
Load SDCaffiine
Load game
After that my results were:
All DLC character were available.
Mii fighters icon bugged into a mario icon, but the mii's were still selectable.
The game would shout out MEELE when entering the character selection screen.
I was able to play online with the DLC characters with no problems.