Great game overall, but every game has a few problems.
Now onto the review,
The Good:
-Multiple ougis in a battle depending on situation, if your health is 1/2 or lower, you will perform a stronger ougi. This is good because you aren't limited to only one special during a match, and because your opponent can't just use a transformation ougi right off the bat.
-Graphics still refreshing to look at. Although there are some exceptions, the graphics are pretty much intact and look better than most PS2 games that came out recently.
-Lots of characters to choose from, now who doesn't like that?
-RPG mode improved.
-Still fun to play with friends or relatives.
-The shadow blur is awsome.
-Added more to battle system, now there's a rock-paper-scissors mechanic added in.
The Bad:
Now before I talk about these, I would like to point something out. I only had minor gripes with these problems, but everybody has different opinions.
-Backtracking sort of pointless, I mean who wants to run back 4 stages just because you can't break a wall and need to get weight things off?
-I liked UN3's representation of Konoha City/Town/Whatever better. Although UN4's does show more detail and people.
-Can't jump onto all the roofs of houses and run up walls anymore. :(
-Alittle on the easy side.
-Could've added alittle more to Naruto's One-Tail model, like some black.