That one anime movie

Where did you see it? Was it on TV? If it was on TV, was it Sci-Fi Channel or Cartoon Network?

Ok, at first I could only remember characters from Pokémon or whatnot that wore baseball caps, little did I know that there was one really obvious movie that was sitting right under my nose (or rather, above my head on the shelf I keep my DVDs on).

Try looking for Fatal Fury: The Motion Picture and see if that's what you remember. It matches up with what you said about having seen it 7 or 8 years ago, since it was getting occasional airplay on Sci-Fi Channel during '98 and '99 (one of the guys I knew in 7th grade offered to bring it in one day when we were going to have a sub - that was in late '98 or early '99).

The movie is actually a sequel to 2 OVAs (OVA = miniseries or special, in Fatal Fury's case, they were specials) produced before that. The anime was based on the Fatal Fury arcade games produced by SNK (and many of the characters are playable in SNK vs. Capcom/SVC Chaos, which was released for XBox and PS2 last year).

The movie's pages:
http://www.animenewsnetwork.com/encyclopedia/anime.php?id=824
http://www.amazon.com/gp/product/B00000I86K/002-2361829-1500817?v=glance&n=130&v=glance (this has a better picture of the front cover)

The OVAs:
http://www.animenewsnetwork.com/encyclopedia/anime.php?id=822
http://www.animenewsnetwork.com/encyclopedia/anime.php?id=823
(the two OVAs were released on one DVD)