A moveset idea:
B: Shuriken (normal weak fuuma)
B Tilt: Super Shuriken (A big orange fuuma which returns to the owner's hand when thrown. It won't stop until it returns to his hand)
B Down: Rising Flames (Throws three flame wheels diagonally upward, burn damage = Mario's fireballs)
B Up: Blade Typhoon (gains an extra somersault jump by spinning like a wheel with sword extended, kinda like Samus's screw attack, except heavy knockback).
A: Katana slash (single swipe drawn directly from saya, has no 2nd 3rd attack)
Tilt A: Heavy slash: Slashes downward with katana.
Down A: Floor slash: Similar to Link's, except faster.
Up A: Overhead slash: Sword drawn from sheath upwards
Dash A: Running iai: Unlike most Dash attacks, this dash attack does not halt, you can attack like a regular attack while dashing. This attack causes almost no knockback (As it would be pretty cheap)
Grab:
A: Hits with swords hilt
Down: Throw down + shuriken throw
FWD: Illusion carries opponent away and slashes him/her.
BCK: Illusion carries opponent diagonally up-backwards and slashes in mid air.
Up: Throws opponent over his head.
Final Smash idea: Flame Wheel: Becomes invulnerable for a while. If he touches opponent, he/she will get burned and trapped in the whirl, Ryu is also able to attack normally while he's in this mode.
Colors: Black (default), Blue, Red, Green, Pink, White