During your battle with him, move Mega Man to one of the front squares. When you do this, Gutsman will approach to punch you. Dodge the punch by moving sideways, then immediately move back to the original location and hit him with a chip. He will now move to a different square, then return to hit you again. When this happens, do the same thing again. When you run out of chips, charge your Megabuster and hit him with it. Note: This strategy will only work with a Guts-style Mega Man.