4-1-3-2 i play with augsburg and have 2 draws 1 win 1 loss for the last 2 years.also against such tactic i would highly recomend raikans migh and magic(counter strategy one) but bare in mind that ribery is highly skillful and loves to cut inside destroying you back 4.so my best recomendation is 4-1-3-2 , fluid, control.leave all team instructions as is but drop d-line to 1-st defensive notch and tick counterattack.in the dm position use DM or AH to hold position , use mixed marking and very important-set the marking of both fullbacks to man.also OI-always tight marking to all 4 attacking players, always close down to the wingers also, show onto weaker foot ONLY to the ST and AMC(although i think most of them play with both feet-in this case leave it as is), hard tackling to everybody, and position instruction "show onto left foot" to the DCL-this also only in case he has a right preferred foot.do not issue a team talk that allows complacency as well

for the player roles, i would say CD's not LDs as those tend to press too much which is not good in this case.also 1 of the 3 CM should be BWS and the best way to counter attack is to have 2 poacher type strikers-a lot of pace, dribling and as much of decisions, off the ball and anticipation as possible.
One thing i almost forgot to mention: to let the ball flow you will need your players drawing nice "triangles"(like in that great Dinamo Kiev team) and in order to force AI to do that you need "move in to channels" of your offensive players set manually.so if you use one more offensive cm, put him in the middle and set his wide play to move into channels, if you decide to play 2 of that type, put them in left and right position(worse version) and once again set them to move into chanels.
P.S. All credit for the last advise should go to Raikan, if you wish you can read his thread about possesion football as well.