Thanks for the tip. I've got a lot to improve, and hit confirms and proper Eddie control are big ones (negative edging still eludes me). Punishing properly, as you note, is another; the pacing of this game still messes with me, but I'm slowly getting a feel for it.
For you? Hm. I guess this would be Zato specific, but I think you were getting hit too much with Eddie's AA move (S shadow) and by the drills. For the former, you were teching way too predictably in the air, so I could often follow up with his air unblockable reliably. You'd have to be more wary when he's underneath you, and either use Faultless Defense to block it, delay your tech to try to avoid it or tech towards me and not neutrally (this one messes with me particularly, because all of a sudden Eddie is out of place and the opponent's in my face).
For the drills, you were standing up to block too much when I would knock you down, so they would successfully hit low too often. My mix-up game was really poor, and pretty much the only times I would try to land an overhead was when Eddie was out and I was using his buzz saw move. That's when I would then try to land a 6K. Other than that, you could have pretty much blocked low the whole time, though I guess this piece of advice won't particularly work when I get better at this (still, it's probably a good idea to block low on wake-up when Zato is relatively far from you because of drills).