Just a quick addition; I don't think the above method will work at all.
If you install the app and do not install the additional SD card data, you will get white text on a blue screen displaying where it is searching for the data. It seems that the application binary is hard coded to look specifically for external data on the SD card.
Though there seems to be some projects that allow M.U.G.E.N games to run on Android, they mostly seem to be emulation layers...
I know this probably isn't helpful at all, but I'd consider porting the game into another engine.
Sorry that I couldn't be more helpful.