So I wanted to talk a little more about fighting Quan Chi. A lot of people I've played have some trouble dealing with the armor circle.
Here are some ways I've found that you can deal with it:
1) Bait a move from the player in the circle. Specifically you want to bait him into whiffing something like B2 that has some whiff recovery. Once he does that, you can run in and use a fast jab string. Since he will be in recovery fron whiffing, the jab will break the armor and full combo him.
2) This certainly isn't the easiest of things to do, but I find instant-air projectiles help. Particularly stuff like MB instant air Cassie guns, Kitana fans, etc. It's fairly self explanatory but the idea is that doing it instant air can help you avoid grounded Rune zoning while breaking armor.
3) A downpoke canceled into an armored move. The basic idea is that the d1 soaks the armor while your armored move absorbs my attack. Stuff like D1 into MB Lao Spin, or d1 into MB Nutpunch, etc.
I hope this helps.