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Arcade Mode:
This mode is like a classic Fighting game simulation. You go through a tourney of 7 opponents one after another until you either beat them all or are defeated. You can only select four battle chips and a piece of armor to take in with you to each battle. You can use each chip as many times as your memory points allow you. So a strategic choice of battle chips will see you through the day. Even if you picked a bad chip choice in one battle, you can switch out battle chip combinations in-between battles. Don't be discouraged if you lose several times, you can either take the practice arena for gold to buy new chips or gain experience and gaining levels by fighting the opponents you know you can beat. Once you beat a tourney at a certain busting level, you can unlock and progress to the next tourney, up to a max of 7 tourneys. Beat all of them at the best busting level and a secret challenger will appear! Good luck!

Tourney Line-ups:
Tourney 1
Cut Man -> Fire Man -> Ice Man -> Color Man -> Bomb Man -> Guts Man -> Number Man
Tourney 2
Bubble Man -> Air Man -> Wood Man -> Beast Man -> Elec Man -> Ring Man -> Desert Man
Tourney 3
Shark Man -> Flame Man -> Plant Man -> Toad Man -> Bowl Man -> Drill Man -> King Man
Tourney 4
Thunder Man -> Heat Man -> Skull Man -> Quick Man -> Magnet Man -> Snake Man -> Gate Man
Tourney 5
Flash Man -> Napalm Man -> Magic Man -> Yamato Man -> Freeze Man -> Mist Man -> Serenade Man
Tourney 6
Turbo Man -> Metal Man -> Stone Man -> Knight Man -> Shadow Man -> Pharaoh Man -> Planet Man
Tourney 7
Punk -> Roll -> Proto Man -> Dark Man -> Life Virus -> Gospel
Special Tourney
??????????

Challenge Mode:
This mode has several challenges for you to tackle with prizes being high-class battle chips, Zennys or armor. However these are designed to kill you quick and fast, so do not attempt any without being extremely prepared. One catch between this mode and Arcade mode, you cannot switch out battle chips in-between battles and must fight all battles in a particular challenge with your initial battle chip combination you chose. This makes it much more strategic and harder to complete a challenge. To access the first challenge however, you must complete the first 3 tourneys in arcade mode before the challenge mode opens up to you. Here are all the challenges in the order they must be unlocked:

Normal Navi Mayhem:
A series of navis will assault you of various colors and attributes. Unlike the ones in practice mode, these are the weakest versions of each normal navi. However, they can appear in groups of 3 or 4 at once. You must survive 6 battles against these goons to win.
(The next four can be accessed after the above is completed, but the challenge after these four can only be unlocked if all four below have been completed.)
Fire Elementals:
You must fight a series of 6 battles against the game's 6 fire attribute navis in this order: Fire Navi, Fire Man, Flame Man, Heat Man, Napalm Man, Turbo Man. (note: These navis are super-charged for this challenge)
Aqua Elementals:
You must fight a series of 6 battles against the game's 6 aqua attribute navis in this order: Aqua Navi, Ice Man, Bubble Man, Shark Man, Toad Man, Freeze Man. (note: These navis are super-charged for this challenge)
Wood Elementals:
You must fight a series of 6 battles against the game's 6 wood attribute navis in this order: Wood Navi, Wood Man, Beast Man, Plant Man, Snake Man, Magic Man. (note: These navis are super-charged for this challenge)
Elec Elementals:
You must fight a series of 6 battles against the game's 6 elec attribute navis in this order: Elec Navi, Elec Man, Thunder Man, Magnet Man, Flash Man, Metal Man. (note: These navis are super-charged for this challenge)
(This next challenge can only be unlocked if you have completed the above four. You can select any of the next three and complete them in any order, but must complete them all to access the next challenge.)
No Mega Buster:
You must survive 6 battles without the ability to use any attack skills, solely depending on your battle chips and items to see you through. This limits your options quite a bit and makes these enemies listed a bit tougher: Number Man, Desert Man, King Man, Gate Man, Serenade Man, Planet Man.
No Items:
You must survive 6 battles without the ability to use items. This severely puts a dent in your versitality due to the extreme usefulness of items such as the Mega Tank and MP Charge. So you must find a way around these setbacks while dealing with navis who will take advantage of this defect: Bomb Man, Beast Man, Bowl Man, Skull Man, Magic Man, Shadow Man.
No Health:
You must survive 6 battles without the ability to use Recovchips or major recovery items. You must somehow find a way around this problem as you battle these enemies specifically chosen to eliminate you without the aid of healing: Guts Man, Ring Man, Drill Man, Quick Man, Mist Man, Knight Man.
(This next challenge can only be unlocked if you have completed the above three.)
Battle Chip Only
You must survive 6 battles where the only option available to you are your 4 battle chip slots. So choose wisely and focus on defense as well as offense, this is a lethal challenge: Color Man, Air Man, Plant Man, Snake Man, Yamato Man, Pharaoh Man.
Ultimate Tourney:
You must fight a series of 6 battles with 3 opponents each who gang up on you in each round to take you down. You must use every trick in your aresenal to bring them down. The true test of your skill! Battle 1: Color Man, Guts Man, Number Man. Battle 2: Air Man, Ring Man, Desert Man. Battle 3: Bowl Man, Drill Man, King Man. Battle 4: Skull Man, Quick Man, Gate Man. Battle 5: Yamato Man, Mist Man, Serenade Man. Battle 6: Stone Man, Shadow Man, Planet Man.

Practice Mode:
You can select the type of Navi you wish to face and you can also select the difficulty value for the battle: very easy, easy, medium, hard, very hard. Then you enter battle and face off against your selected opponents. Once the battle ends, you get Zennys to use at the shop, but no experience points. Practice until you feel you have had enough.

After Game Festivities: These events show up after you have beaten the game once.

ARCADE:

Tourney 8
Cold Man/Aqua Man -> Burner Man/Spark Man -> Top Man/Wind Man -> Junk Man/Search Man -> Kendou Man/Video Man ->Shade Man/Laser Man -> Nega Man

CHALLENGE:

Hidden Tourney (Status):
You must survive 7 battles while constantly being hacked with no way of recovering from it. This severely puts a damper on your HP and forces you to watch your HP as you battle these seven Navis: Blizzard Man, Slash Man, Blast Man, Charge Man, Dust Man, Ground Man, Cosmo Man.

Hidden Tourney (Exception):
You must survive 8 battles with randomly prohibited abilities. One battle you could lose the use of items, the next battle you could lose the use of your battlechips. You just don’t know! You must face off against these Navis: Dive Man, Cloud Man, Circus Man, Gyro Man, Tomahawk Man, Medic Man, Killer Man, ???????.

TRAINING:

Endurance Test:
You must battle against every Net Navi in the entire game back to back. They will appear all at once in each battle according to their tourney to test you. You can use any and all means available to defeat them during this ultimate challenge!