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Clones
While playing a two-player game, press START then press SELECT, choose a different character, then press X.

When either player is teleporting in the blue ray, have the other player press START, then SELECT. If you're quick enough, both players will have the same character.

Extra Options
Go to the OPTIONS screen then highlight TRAINING and press L1+L2+R1+R2 to get extra options like invincibility and level skip.