Ultra Fatality

If you doing a full-game then its best to release it as a big game or release majority of the progress you done as you update it.  Its pretty much up to you how you want to do it... :-P

I Was going to release as a full game it just may not have all the characters on there right away i may update the game as well as the roster every now and then when i can or i can release it all at once but it may take longer doing it that way hmmmm

If it were me, I'd release the full game, not compressed into an exe, as something like Killer Kombat v0.8
Let people extract the chars and stages if they want.  Then just keep releasing updates of the full game as you get to each mile-marker in the development.
Like in 2 or 3 months, then release Killer Kombat v0.9

I mean you could have up to date versions of the chars and stages on the same thread, and update those as you update the chars, but ultimately those updates would be in the next full-game update anyway.  So it wouldn't be completely pointless, but almost.  The only thing with that, is if you loose steam on the project and decide to put it down, I would just make sure you make a final update at that point to get all the updated versions of the characters and stages out there.

Again, that's the course I would, but as Galvatron said, it's completely up to you in the end :)