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I just beat it. I played the level multiple times and leveled my Charmander up until it evolved at level 16. From there it was relatively easy. When the Pikachu come running in you have to swap positions of your Pokemon. I only used my Charmeleon, but it's ember attack combined with it's high level made it much easier. However, the game seems to have a glitch in the Pewter Gym, every single one of my Party Slots is blank. I'm going to play the real games now.
in the bottom right hand corner there is a pokeball right above the exit button. get a wild pokemon down into the red and click and drag the pokeball over it. the game will pause when you do this so catching em all is easy
i trained up all my pokemon till about level 10+, had charmander lvl 13, beedrill lvl 11, pidgey lvl 12, pikachu lvl 10, rattata lvl 11, butterfree lvl 11. Basically got all my pokemon leveled up on veridian forest until i got my kakuna, and other bug pokemon leveled up to 10+, then they evolved. Beat pewter gym 1st try