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"Meanwhile at Demon Dan's"
"I hope you can do better than that, shrimp. I've been here so long my clothes are starting to rot. Now quit being so wimpy and get me outta here!"
Damn, with a girlfriend like her, you don't need enemies. Especially the weird enemies inhabiting this game. Two Ninjas will appear right at the beginning, both of them on boxes to the right of you. Don't go up to them though, wait for them to come to you, that way you can beat them up one at a time, or if you're impatient, run up to one of them and beat him up quickly, then move onto the other one. After you kill them, head right but NOT too far, just up to the manhole near the blue house.
Wait for the guy in the sewer to give you a balloon, then just float to the roof of the next house and stay up there, where you'll see the ugliest enemy in video game history - an nearly naked Sumo-Wrestler. Heh. Anyway, the idea here is to just wait for the Sumo-Wrestler to run into one of the bombs that are being thrown around, so he'll explode into pixilated chunked and you can move on. Stay on the roof and get the heart on the other side of the house, then fall to the ground and kill the Ninja waiting around for you.
Now, jump across the large hole to the right (you can make it, you just have to time your jump). Continue over the set of boxes ahead of you, then the other set, but try to grab a bottle from one of the guys in the sewer before you go. Now, take the bottle and use it on the Ninja ahead, then go back and grab another bottle and use it on the Ninja near the blue house, then another one to use on the Ninja near the green house.
After you kill the Ninja near the green house, go back to where the Clown with the balloon was and mug it for it's balloon. Take it to far right, where the second Sumo-Wrestler is and stay on the roof of the building there until it's killed by the bombs. There will be another Sumo Wrestler ahead and seemingly no easy way to kill him but there's always a way! Jump over him and wait by one of the manholes for a balloon. Take it to the roof of the house and wait for this Sumo Wrestler to run into a bomb. All that remains now is to cross the hole ahead. Grab one of the balloons and take it across to finish the stage.