I returned to this game at long last, and happened to find a new glitch and another technique which helps to make even crazier air combos.
First, the glitch. Pressing down + left or right while blocking and then starting shifting your stance, your character goes into a glitched mode in which he seems to shake in trembling fear. If you let go of block, your character apparently returns to normal, but he can't do attacks (unless you move him first), and he automatically blocks the next attack targeted at him during a short time period (even though you are not pressing 'block' any more nor does the character look as if he was blocking). I haven't found anything useful for this technique, except perhaps making the next playaround look sillier with trembling characters 'n' all. But testing this was what led me to discover the new technique:
If you press down + left or right while blocking for even just a moment during an attack, you buffer the block (in a glitchy way). It can be seen after the attack for a few frames as the character quickly visits the crouch blocking pose. Buffering a block also makes some attacks cut short, giving you extra edge with combos and such... Shang becomes a juggling powerhouse due to his Crane normal kick resolving 12 frames quicker! I made a quick videos showing some juggles with this...
http://www.youtube.com/watch?v=ONXi_Tkl9lk
I think this technique is a glitch, but I'm not sure... It doesn't affect any move in the game in a groundbreaking way, just lops off on average about 8 frames from the end of some moves. From what I tested, each character has 2-7 (out of max. 10) of their basic attacks that can be made a bit shorter with this trick.
EDIT (2011):
Okay, a lot of time passed since last post and a tag-mode run of MK:TE is now published. I think I'll be leaving this game to rest now for a while at least.
I put up my notes from when glitching this game on Wordpress in the case someone wants to try the morph combos out:
http://akheon.wordpress.com/2011/07/17/mk-te-tas-notes/
Godspeed!