Naruto's animations are in a .mot file (I think) and not in the so wanted .chr0 files.
Also, repeating my previous note:
I can confirm, it flaws at the first match you grab Naruto.
All matches after that one will work flawless (so enter a match against Naruto, grab him and let him glitch up or instant death, end that match by pause and enter a second match and grab Naruto, it will NOT glitch up).
y is that it only glitches the first match?
It glitches in the first match you grab Naruto.
It can also be that Naruto goes extremely high or off the screen and dies instantly when grabbed.
But only in the first match you grab Naruto, not the matches which follow.
EDIT: About the animations, he also needs the damage animations.
Also, he dies instantly when grabbed in training.
And I consider this a ghetto fix, because it has a few serious problems (like freezings when playing Ichigo and only working separate from eachother).
EDIT2: Here's a vid showing the fix and it's oddities.