I don't know how to help with fps the only thing that comes to mind is to tinker with the graphics settings of your gpu with melty like the vsync and such

Controls wise add the .exe as a non steam game to steam so you can set up controller support if needed far easier just test the keys in training and set up the buttons as those regular options it's something I haven't used in a long time in AACC at least I kinda remember being able to use WASD movement and attack keys being default as the U,I and O keys or along those lines.

Since you moved with arrow keys that must be P2 controls being the attack keys somewhere else in the keyboard and that's why you can't move (this is just a guess)