That, is Character Creation on high. The game lets you edit character models, moves and animations with an impossibly weird interface. It doesn't function as a game really. To sum it up, that has to be the strangest thing I have ever seen!
I own this game. It's too much work. The engine is basically a VF engine, you can't alter things like throw break windows or other properties, but you can design moves and dress up characters and alter move properties.
They should have called the game "Fighting Move Maker 2"
Otoh, it is a great intro to 3d animation engines.