To unlock the alternate ending, get Mr. Satan (Hercule) to level 50. the go to the News station and break open the door. Walk in and the ending will start.
During the opening of LoG 1, hit: Up, Down, Left, Right, B, A to gain immortality throughout the game. If done correctly, a sound will confirm it. Enemies will not be able to hurt you, but you still get hurt if you touch the edges on Snake Way!
To unlock Mr. Satan get every character to level 50 then get all of their trophies. A screen will come up saying Mr. Satan has been unlocked.
To get these trophies you need to level everyone, except for Goku, up to level 50. The trophies are located behind everyone's level 50 door. So break down the door after your character is at level 50, then make it to the end of the area inside the door, then collect your trophy!