SS2 isn't terribly hard once you get used to the controls and strategies, but it'll wipe the walls with your ass until you do. While you're learning the game, knock that difficulty level all the way down to 1. Even on 1, it's still a challenge, the AI is a bit too rigid. But don't worry, SS3 is even worse, as is SS5. SS2 is the second easiest game in the SS series, only SS4 is easier. If you really want to kick ass in SS2, use Haohmaru, Genjuro, or Gen-an. If you want to be a cheapass mofo, go for Cham Cham or Charlotte. The ninjas are pretty crap in this version though (Galford and Hanzo). A good newbie strategy is to rely more on light and mid hits than trying the heavy hits. Also, jump attacks are often pretty useful as long as you get the move off quick enough. Air attacks are especially useful against Earthquake as long as you hit deep-in, otherwise he really likes to quick-counter faster than you can say "My blood boils for battle".
And yes...most of the music sucks ass.