I ran into an almost exact same situation as you did. I ran into a 4-1-2-1-2 narrow diamond and i used what I read was supposed to be a counter formation of the 4-5-1v. I ran with normal, down both flanks, own half, mixed, and zonal and lost pretty bad. 3-2 was the final score, but my two goals came late, so it wasn't as close of a game as it looked. My quality was 3 points better than his side also.
What was your result? Did you change formations?