Arcade stick. I have learned fighting games on a pad until i went to college and actually played in an arcade. Since then i have tremendously gotten better using a stick.
The reason a stick is better because you are using your wrist to move the stick instead of one thumb. Its less muscle intensive and more natural. Other than that, your entire hand and fingers can access all the buttons easily and naturally instead of using two fingers to do combinations (unless you use the FightPads).
Some people stick with pads because it takes alot of time and dedication to re-learn the game from scratch since playing with a stick can be cumbersome if you are not used to it. But i highly recommend it as there are many things i cannot do on a pad, but can on a stick. And theres never a time i felt the other way around.
I highly recommend Japanese Hori sticks(you can get an EX3 for 50 bucks) for almost all games. If you want an American stick though, you can consider MAS systems or build one yourself/commission one. Its not that hard once you get into it. I am currently using Hori stock parts, but once it wears i am going to replace them with Sanwa buttons and sticks because i like the high sensitivity in them.
Joystick Controller - The Joystick Vs The Control Pad
Joystick Controller - Joystick and Button Attributes and Brand Parts
To the OP, check out TekkenZaibatsu for Tekken strats or Shoryuken.com 's forum tech help area if you want more in-depth information. Alot of this stuff might seem overwhelming, but its important and not that bad once you get into it. Though you are only as good as your connection to the game.
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