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Try getting rid of the "good" players and play the ones which are performing for their league teams. When i say get rid of i mean just don't play them, don't drop them from the team cause you'll never know when you might need them.
In this game with the new moral they seem to perform better if their position is on the line. Or they did for me with England when i lost 4 in a row. I was threatened with the sack and i did some major changes which paid off.
Play to your star players preferred style of game. If you have fast strikers then play to that with some fast direct play. Great wingers then play wide like man utd do
tbh i think its trial and error with any team. Try 4-4-2 and see how they go. Maybe put a diamond formation in the midfield if you're suffering from a goal drought and let Ronaldiniho play AMC for support and leave a DM back to support the defenders. In my experience a DM can be a great asset cause they can deliver passing support as well as defensive support for any attack you might have to endure
But you might not need it if you have good defenders. I'm not familiar with the Brazil set up but i can't imagine them having crap defenders lol. Do friendlies, alot of friendlies until you find a formula which works best for you but the one i suggested won me a world cup with England (not hard on paper i know lol)
First thing you do is drop Adriano. He's not a consistent performer. When he shows up, he's awesome. But he doesnt most of the time sadly. Fred is without doubt your best striker.
Brazil's strength right now is their midfield. Kaka, Ronaldinho and Diego who can all walk into any side on earth. I'd suggest you try to play a narrow formation with you fullbacks providing the width.
Also, for your LB, get someone a little more solid defensively. Marcelo doesnt cut it sadly when it comes to defending. Where's Guilherme?? He should be FB by now. Get him into the squad. Also, where's Breno?? He should definitely be there. Get rid of Lucio as he'll be past it by now. Also, dont forget Alex (Chelsea) as a CB. He's solid too.
GK, draft Marcelo Grohe in. He's a very good GK.
My formation:
GK: Cesar/Doni/Grohe
RB: Daniel Alves (D-UH!)/Ilsinho/Maicon
LB: Guilherme/Adriano
CB: Felipe/Breno
CB: David Luiz/David/Alex
DM: Lucas
AMC: Kaka (centre)
AMC: Ronaldinho (left)
AMC: Diego (right)
FC: Fred (left)/Kardec/Love
FC: Robinho (right)/Adriano
Set Kaka, Ronaldinho & Diego for a lot of through balls. Also, Ronaldino & Kaka to take long shots & dribble. Keep Lucas on normal mentality and creativity and keep his runs, dribbling, shooting etc down to rarely. But have his through balls on often. He links up well with AMC's.
Have both your fulls backs on forward runs "often" and cross ball "often". Have an arrow pointing to the AMR & AML positions respectively. And since they'll be going forward, make sure you have your CB's on total defence. Dont let them get forward of you'll get on the counter a lot of times. And when playing against a bigger team, have Lucas of full defense as well.
You might also try having your FB's play as WB's and give them an attacking mentality. In this case, play 3 CB's and keep them all on total defence. Lucas would be dropped in this case. Just play around a bit like this and you'll hit the groove soon enough.
Thats the sort of reply i would like to have given if i'd have known a little more about the Brazilian team in fm08 i probably could have lol. I agree with the Guilherme, should be in there by now.
Don't play Love though. I signed him on my Villa game and put him back on the transfer list months after. His team work and work rate attributes make him very selfish and he very rarely passes. Those mixed with his sub-par attacking skills make him pretty useless. Stick to Fred and Robinho/Adriano
Thanks for all the replys, only thing is Fred started hating me and exposed me to the media and then ronaldino and kaka joined the gang,so i was thinking of resigning when Spain offered me a job LMAO so i took them instead and resigned from brazil. ATM IMO spain is much better and younger which love
Need MAJOR help!! 
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