When fighting the manikins, it really depends on you. When
fighting Chaos, use a long-range type of character, such as Terra.
The reason for this is that you will be fighting Chaos in the Edge
of Madness which is a really small stage. Best to choose a
character that can attack at any distance.
Heres a hint: Use a character that is at least at level 70. You
have a better chance to win. I beat Chaos with Cloud because he was
the only level 70 character I had. :P