You should perhaps try a different character. I went with Dizzy, and had a pretty hard time with two fights preceding I-No, and I quit on I-No after trying about 20 times. Then I had an idea :) I changed round time to 30 seconds, staggered my way back to I-No and then just avoided Megalomania (read the comic :)), and put in a few counter attacks - still took me a dozen tries because she'd corner me and then do that nasty super, but in the end I emerged victorious. Cheap, perhaps, but at least it's not cheating.
Today, however, I tried out Slayer and Venom. Results? Slayer - lost once to Potemkin and once to I-No. Venom - was three fights till I-No, no defeats, but I had to stop playing abruptly. Perhaps I'm just getting better, though :) (Note: Normal difficulty)
This is using the keyboard, by the way. I have a gamepad plugged in, but I suck with it and use it for trying out moves that require multiple keypresses / practising to suck less with it.
Some potentially helpful notes for other keyboard users:
1) If you've taken a look at the special moves list or a FAQ dealing with them, you've noticed that a lot of them require the quarter circle forward/backward (D, DF, F or D, DB, B) movement. However, I've found that lots of moves actually work if you do just DF / DB. Same goes for half circle f/b - instead of the whole combination, some work fine with just BDF (FDB), although this is much rarer. I suppose this is due to ghosting? Doesn't matter, it makes it easier (I don't mind the QCF/B, but HCF/B is difficult to pull off reliably).
2) Since inputing more than two or three keys at once usually doesn't work (some keyboards are better than others, ie anti-ghosting), you're cut off from some features - namely, Roman Cancel (and Fake Roman Cancel) and instant kill. Or so it seemed. If you look at the key config, you'll see various combinations under Memory - so you can assign two of those - I use one for RC and one for instant kill.
(I realize some or all of this might be obvious to everyone else, but perhaps someone as clueless as I was will find it useful. Excuse the rambling, it's late and I'm still feeling sick.)