Heya! I must say I like SSBB a lot (even if I didn't actually played it) and I was close to considering making a clone at some point, but after doing some research, found out about this project.
Was wondering what's the status of development, since I noticed there hasn't been any activity in this subforum for quite a while now.
Btw, I'm founder of http://www.AncientBeast.com, which now has it's own subforum around FGD as well.
We're developing more than 50 original creatures in 3d for our project, under CC-BY-SA 3.0 license, which we're prerendering into sprites for the first version of the game.
As far as I'm concerned, you're free to use any of them for Ultimate Smash Friends as well (Flare RPG will be using some too it seems).
The creatures can be found in our Wuala repo http://www.wuala.com/AncientBeast/bestiary/
I really hope the USF project is not dead and that my creatures could bring some eye candy and new awesomeness into it.
Would be fun especially considering SSBB's crossover nature.