MOusse420, it's "Fuzzy" from SMW2: Yoshis Island
This must be some sort of a beta version of the game. I did have the real one years ago, and this version really is missing a great deal of playability.
This game did have a network play option, too. After we got a network at home, I remember playing that capture-the-flag game with my brother all the time (and Worms 2)