Definitely upgrade Hinata! You will pretty much never remove her from your team.
This is what I recommend you do.
Team set up
X X X
Shizune Fire Main Hinata
X Kakashi X
Talent setup
Fire Style Dragon Glame Jutsu
Fire Style Flame Jutsu
Fire Style Celestial Prison
Genjutsu Mirror Return
The most important thing for you to do right now is to get Hinata to 2 stars. She becomes amazing at 2 stars. Of course 3 is better, but 2 is a must. NOTE: This team does not work Until Hinata is at 2 stars. What everyone else recommended is OK until then. But I think this will be superior once she reaches 2 stars. I has good damage and good combos.
Farm for Kabuto and replace Shizune with him. Kabuto is a great healer and his clones absorb a ton of damage.
Look at this Combo
1 Mystery - Earth Style Fanged Pursuit Jutsu
2 Fire Main Chase Celestial Prison
3 Hinata Chase Sealed Point Palm Strike (Causing Acupunture)
4 Hinata Chase Gentle Step Twin Lion Fists
5 Shizune Chase Chakta Dissection Blade
6 Kakashi Chase Fire Style Fire Ball Jutsu
7 Kakashi Chase Lightning Blade - Twin Lightning Shiver (Causing Paralysis)
You got multiple 6 attack combos in there, too!