Does the character you pick in beginning if they are say Strong or fast or balanced or magic-does that do anything for your damage or what not?

Like If i choose the arnold schwarzanegger tough guy char, will he deal more damage and likewise will a magic character deal more damage with mana spells to explode dragon testicles.

Nope, it does not. Strong/Fast/Magic/Balanced means the distribution of stats, but they are responsible for Health/Focus/Chi. What damage you do depends solely on Style you choose and how much you advanced in it. Altought you can use Chi to power-up your strikes... it's not that powerful (at the beginning), and Chi would be spend better as healing.
Going from most powerful figthing style in regards of damage: White Demon, Legendary Strike, Leaping Tiger, Thousand Cuts.
WD is slowest of them all, but has nice reach and deals most damage. LS is quite balanced, LT simillar, but prefered by some players for movement (in some attacks you lean in the air, dodging attacks). TC is fastest, but has smallest reach and damage.

So you can pick whatever character - difference will be only that one is healthier, has more focus or more chi. And you can olways distribute the starting points yourself.