NEWS FLASH: KOFNW WORKS GOOD ON THE X360!!!
Ok, I'll explain:
When I was testing awhile back, I didn't realize that my settings were changed for my TV. This somehow caused the glitch where the characters would move, but the stage wouldn't move with them, making the characters "magically" slide when knocked down, etc... Anyway, I checked it out today, and it turns out, just putting the graphics back to default settings makes the game run perfectly. I wanted to try and see if the glitch was character specific, as last time I remembered, I had Billy Kane vs Ramon at the Greenhouse stage, and the glitch was still fixed. So with that said, get KOFNW while you still can online on Amazon or whatever. It's great!!!