This is stuff I'm gonna throw in a Ryo FAQ to submit to GameFAQs, but I'd figure I might as well share it here since he needs some loving.
First of all, a lot of what I'm gonna be posting about is in regards to this old (but still true) article, namely trapping and getting Ryo's "sweet spot" right:
The Art of War: Deception
Ryo is VERY good at dancing around this sweet spot position. As the article pointed out, his optimal range depends greatly upon who he's fighting, but generally you want to stay outside the range of most characters'

As and with concern to Clark, his UAB range. Against Kula, you will actually have to place yourself closer to where she can hit you with a far B or far C - far B is no big deal since all it does is create a hiccup within your mixup game, but be prepared to Psychic Shoryuken that shit if you see a far C being stuck out. Better Kula players can hit confirm off the far C and go into her gay LDM combo.
Against most everyone else, as I've said previously, his best place is slightly beyond a character width. Make ABSOLUTELY SURE that if your opponent rolls against you, that he rolls right in front of you. Remember that XI rolls are relatively short. Think of how short '99 slides were and you'll get the idea. You'll want to place yourself in a position where rolls are ineffective against Ryo, because a lot of Ryo's 1-character-width defensive zoning game can be broken with a well-placed roll.
At this distance, a majority of Ryo's weak button moves are VERY safe, and it also gives him room to randomly throw in his annoying yet effective command overhead and specials. You absolutely do not want ANY of his special moves to whiff. They are fairly punishable if they somehow miss the opponent.
Once you get within this spot, be willing to occasionally walk past it and into an offensive game. You will have to abuse Ryo's priority to shut down your opponent's attempts at stopping you. Play footsies with his far B,

B, far A. Stick out his incredibly fast CD/E button, do slow high jumps into his jump D, or low hops into his hop D. Tick throw like a bitch. Get in there, harass them, then do either a backdash hop or hop back into his optimal position.
And as always, Ryo is capable of entrapping the opponent because of his simple high priority and low lag moves. Case in point - his f + A. From my experience against expert players, this is one of THE most annoying things someone has to block, because this effectively forces a player to stand UP while Ryo is grounded (most of the time the only way to force someone to stand up is to jump at them). What's worse, unlike other characters' overhead moves, Ryo gets a decent momentum advantage
whether this is blocked or not, especially if Ryo scores a knockdown and forces the opponent to eat a meaty overhead.
If you force the opponent to wake up into the tail end of the f + A, you can now start another high/low game simply by spamming another f + A, or tapping in a low B, which can then be mixed up with another low B or a f + A. Think it's easy to defend against? Try get hit by it. You either need to roll out (which Ryo can bait) or do a high priority or high invincibility move to get out of it (which Ryo can also bait).
Don't forget, any safe blocked pressure string can be followed up with his

+ A to stuff their attempts at punishing your supposedly punishable pressure string. If they've gotten smart and started baiting

+ As (i.e. you got them on the defensive "looking" for holes in your mixup game), this is when you begin advancing on them with hop Ds into another pressure string.
These are tactics I've been using since KoF 2k2, and they still apply now since Ryo's basic game hasn't changed. Much of Ryo's game was ruined in 2k3 (save for his twitch LDM), but now with the advent of XI, it's pretty much back to business for Ryo.
Hope this helps someone. I wish I had some easy means to record match vids at my arcade to show how exactly I play...