Actually, it happens to me to. Only player one and cpu's can select him, adn to use him you need to turn players 2 3 or 4 into a cpu then select the character and once your done, just put them backas players. It works for me, just doesn't seem to work on stuff like target practice for some odd reason. So you can only brawl or special brawl from what I know so far, O hope this helps.