[triconitroz]

so is Mufti's PC that MARC II lives on in Mufti's room?

Yes. Basically MARC II is locking Mufti together with it in the room.
But you can't mess with the hardware. (I have no definite reason yet for this, so I'm open for suggestions)

UPDATE

I've consulted my friend who knows a little bit about hacking and figured out more to the battle. It's just a small part of 1 of 2 battles though, but it may give you guys an image of what it'll look like or what I'm looking for.

Here it is:
MARC II uploads the virus, which was itself. Mufti then net cut MARC II, failing the upload. MARC II turns on its firewall in hope to defend Mufti's attacks, but Mufti turned it off. Mufti opened command prompt, typed /shutdown, tracked MARC II's IP address, but MARC II uses /changeip in command prompt repeatedly, changing its IP address every 0.5 seconds. Luckily Mufti remembered MARC II's real IP address, so he froze it immediately. Just when Mufti was about to launch the shutdown, his anti-virus popped up with a text : "Warning! Your firewall has been turned off!" He knew that it was MARC II's attack, but before he could do anything his laptop was shut down.

Mufti reboots his laptop.
MARC II applauds itself.
Mufti's laptop finished rebooting and connected to the WiFi.
The battle started again.