People like strider or Sora are so hard but fun to play as, so I made an entire file deticated to characters that are either too cheap or too hard. Oh gawd I had loved the game a lot, had a somewhat large roster but the problem with MUGEN is that half the people who make characters can't AI program worth a damn (I know that's the hardest step but, come on.) I mean either the character ends up being so hard that you might end-up smashing up the computer or easy enough that I can beat that person blindfolded and both my arms tied behind my back and almost no middle ground.
I believe I've started doing it since 2006 or 2007. HOLY CRAP 7GB! How long have you had it? I basically got a lot of it from my brother's old DVD, then I just started adding loads of characters and stages ever since. Overall my MUGEN folder is over 7GB in size. Of course because of that sheer number it takes a long time to load up. My roster is over 800 characters and I use EVE Battle (Everything vs Everything) as my screen pack.
As for legit sites, I've got too many bookmarked. Main site I go to is eSnips, because that's where people love to warehouse characters. There is a hi-res version of the EvE screenpack (also created by DJ-VAN) that both looks graphically smoother than the original, displays M.U.G.E.N in a bigger window, and has complete support for M.U.G.E.N 1.0 - something an un-patched version of the regular EvE screenpack lacks.