So I've made a lot of progress with the engine so far. Here's a list of what I've done:
- Fixed collision system so that the right animations play when the player gets hit/damaged at a particular point (*duh)
- Added the points system (still in alpha stage)
- Health bar had some minor bugs, it's seems to be fixed right now.
- Combo bar active, but unable to do combos at the moment ( )
- Added "stun" effect (you can see it's bar under the health bar, it's a small red bar. When it gets full the player is stunned
- The "K.O" thing started out pretty fine  I've used a reference to what Dines did with his turtle engine game Looks a lot like the original game 
So here is a short clip for how the engine is going to far. I've used BSR to record it so not all of the screen had showed up (sorry about that). And I couldn't seem to upload it to Youtube so I chose vimeo to upload to.
Enjoy
Link: http://www.vimeo.com/2791896
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Mr G 
(literally) so I'll do another one tomorrow perhaps 
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