The only characters I recognized in Melee (the first Smash game I played) were Link, Ganondorf, (I hadn't gotten very far into Ocarina of Time before I played Melee, so I didn't recognize Zelda, or Sheik for that matter) Pikachu, Luigi, and to a lesser extant, the rest of the Mario cast. (except for Peach. The first game from the Mario franchise I ever played was Luigi's Mansion.)
I slowly learned more about the other characters overtime, and took a liking a fairly big liking to the Kirby series among others.
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On the topic of the daily pic, I'm thinking it's most likely a reveal of a Melee-styled adventure mode, seeing as how Sakurai made a reminder that there will not be a big storymode like in Brawl, and the stage looks like it would be rather large, so it could very well end up being an adventure mode area. No clue where it's from though, or if it's an original stage.
Also, Rayman in Smash would be truly awesome, but I can't really see it happening.