Play any game and when all the players reach the goal, at the blue landscape screen with the big Japanese letters right after the "GOAL" screen, press Select. If done right, you'll enter the Staff List menu.
While playing, when your turn comes up, you'll see your car on the map before the game automatically takes you to the roulette screen. Right before that happens, while the car is stationary on the map, hold II and use the directional pad to be able to see the whole map.
At the title screen, hold Select and press Run. You'll enter the name entry screen. Now hold Run and press Select to go back to the title screen. Finally hold Select and press Run again. Now, start the game and when you get to select your characters, everyone will be replaced with ugly characters.