Beckenbauer (and later Schuster) as playmaking libero.

Man-marking by stopper and full-backs.

Never seen so many directions in all my life...

Indeed Arsenal,

those were the basic movements of players in relation to one another (and the pitch of course).

I like this formation, its strange that nobody really plays a 3 plus sweeper defense anymore, If i could ask a question, what team in the top 4 in the English Premier League would be most suited to this formation.
Obviously i'll say Arsenal... hehe
Your Thoughts?

In the Big Four?

Hmmm.... well, both full-backs would have to be quite conservative..so that would rule out the likes of Bosingwa, Eboue, Sagna, Dossena, Evra and Clichy. Maybe Ashley Cole could just about get away with it (since he has become more defensive in recent seasons). Certainly the likes of Arbeloa, Neville, O' Shea, Ferreira, Gallas (when he occassionally covers at full-back) would be ideal.

The German libero tended to be not so much a destructive holder like Makelele, instead one who had a better passing range and technique: so I reckon Obi Mikel would be just about right, or ideally Xabi Alonso.

Let's say Liverpool for argument's sake...

libero = Alonso
stopper = Carragher/Skrtel (maybe even Agger..or if you prefer a more conservative libero use him instead of Alonso)
full-backs = Arbeloa, Fabio Aurelio (but he'd have to resist making forward runs for much of the match).

centre-mid = Alonso
left-mid = Riera (or even Gerrard..cutting in onto his right foot)
right-mid = Benayoun? Lucas?
advanced playmaker = Benayoun/Gerrard..then again..Liverpool don't really have such a player..Silva would be ideal. Gerrard is much more direct than a playmaker. but
Second'striker = evolved from the old winger (as in 'outside-forward') who just moved closer to the centre; someone like Babel? Not as bureacratic or work-horsey as Kuyt or Riera certainly. Again, David Silva would be as good at this role as he'd be in the playmaking role.
Striker: Torres, of course.

What do you reckon??

Oops.... centre-mid as Alonso- already put him down as libero....so , I dunno..Mascherano?

Ah okay I understand.
If Arsenal were the team that played this formation, would I be correct in the following:

Libero - Toure
Stopper - Gallas
Full Backs - Sagna and Vermaelen
Centre Mid - Fabregas
Right and Left Mid - Nasri and Rosicky
Advanced Playmaker - Arshavin
Second Striker - Robin Van Persie
Striker - Adebayor

Something like that?

Yeah, something like that.

But I can't imagine how this system would benefit such a fluid team like Arsenal.

It's better for the Chelseas and Liverpools of this world.

Oh Okay :)
Would Italian teams benefit by using this formation?

Yeah, possibly.