I can't do images right now but still think I can help a bit. If you can open a document in a word processor, insert an image and save it somewhere else then patching is easier than that. Generally it amounts to
1) Select file you want to change
2) Select patch file which contains the changes
3) Tell it where you want the changed file to end up and press go.
Applying multiple patches can be harder (sometimes hackers alter the same thing and use the same space to put their extra stuff in) but here it seems the author of the second patch made sure it would work.
So patches in questionhttp://www.romhacking.net/translations/1384/
being the retranslation to sort the broken translation from the original.http://www.romhacking.net/hacks/3272/
being the hack you want to further tweak the game to hopefully make it more interesting.
Reading the readme for the latter it sounds like the retranslation checks itself to make sure it is what it expects (usually so people making repros don't remove things or alter things). After that you can come back and apply the special version of the hack patch to change things.
To that end
Get the base ROM. Both patches are made to work with the same one. That is to say one with CRC32 of 67CDACC5. If you are not familiar with CRC then it is a weak but still useful means of telling whether you have the file it wants -- if you added up all the numbers in a sequence you could send that and someone could be reasonably sure the numbers had got through OK if the sum matched, CRC is like this but more advanced. Your zip tool probably has a column saying what it is, but you can download others http://rapidcrc.sourceforge.net/
being one of them. If your ROM site does not provide a suitable version you might be able to modify it such that it does, but frankly I would suggest trying another ROM site.
Apply translation patch.
Run the translation patched game in an emulator and it will make a save game file, said save is what it checks after the first time to make sure it is what it expects.
Now you can apply the modified game patch you want. This will be a separate file within the modified patch download (in a folder called retranslation). You have patch A and B according to the readme. Patch B is the classic version of Ryu. Patch A gives him some spells as well and maybe gives you a play style other than "wait until AP is full and use dragon powers".
Anyway after you picked the patch you want and applied it you play game as normal.
Many IPS patching tools exist.
I like http://www.romhacking.net/utilities/13/
There are however loads of other choices http://www.romhacking.net/?page=utilities&category=2&platform=&game=&author=&os=&level=&perpage=100&title=&desc=ips&utilsearch=Go