Honestly, I don't think either 2001 or 2002 are bad games. For me the best in the series is 97 followed very closely by 96. 2001, I liked, a lot at first, then when 2002 hit it was like a slap in the face. The backgrounds in 2001 were pretty bad, uninspired and lame... however, I never minded the music. I actually really liked the tune for the Japan team... that fuzzy synth was sweet sounding. The rest of the music was techno trash, but it didn't put me off in anyway, maybe it is because I find most KOF music pretty sappy... and love 97... hehe, making sense?
Now that I have had some time, 2002 just lets me down. I usually play one player, since I don't have a lot of gamer friends... and to be honest, the 1p experience in 2002 is lame. No endings, no story, no reason to finish the game. Plus, Rugal is cool and all, but he bores me. 2001 atleast had a reason for me to play it, and I liked the lineup of characters. If I had to choose one out of the two, it is going to be 2001 hands down.
-Nick