Don't worry about challenge mode, it is indeed what the title suggests, a challenge. I had a hard time pulling off some of the combos. As for tips on how to get better, definitely keep practicing. It's not as hard as you think! Try some different characters around. As I am sure you already know or have been suggested to do, start practicing with Ryu. Ryu is a pretty well rounded character, and learning the basics with him will help you learn the basic movement inputs with over half of the characters. It will really help you nail that QCP + P combination of buttons. You will be doing them like they were nothing!
Once you have that down, it is really easy to get past most of the Easy arcade modes. Once you can do that confidently, it is all up to practice. It's not that you suck, it is more that you have not memorized the timing of how the game is played. The more you play, the easier it will be to recognize when characters are vulnerable and when a good time to attack is. Also, try not to be too aggressive, that is definitely a mistake that many newcomers make.
Ryu is good for a lot of the characters, but it is also good to practice with some characters that have charge moves, such as E. Honda, Guile, and Blanka. These characters can be very effective, and you may like their style more than characters similiar to Ryu.
Anyway, just keep at it! Once you break into it, you will really enjoy it and you will see why it has so many hardcore fans!
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