As for Naruto vs. Sasuke, it picks up after the successful completion of the Gaara rescue mission (as seen in Ninja Council 4), and has Naruto and Sakura getting a new teammate in Sai (replacing Sasuke) and a new squad leader in Yamato (replacing Kakashi while he recovers). In general, all of the character sprites do a good job representing their anime counterparts, and while they don't take up a whole lot of screen real estate, it is still very obvious which characters you are playing as and/or fighting against.
Like the past games, the backgrounds do a decent job of setting the stage. While there aren't a lot of iconic images in the game to firmly place the levels, when there is something to show, it is shown prominently. Most of the time though, you will be running through generic city streets, grassy plains and wooded areas.
Sound is okay. As you would expect, there are no voiceovers, but the game's music and sound effects get the job done; however, Naruto vs. Sasuke is easily just as playable with the sound off as it is on.