Alright, the biggest thing to know when playing falco is to fake him out. He will try to reflect your bananas all night so you gotta bait it and then punish him for it during the frames when the reflector is going back to falco. Good ways to fake him out include a down thrown glide toss backwards out of a full sprint, run > short hop > z drop > fair if he kicks out his reflector, and you can even crawl under his reflector and dtilt with a banana in your hands. As far as punishing when he misses the reflector.....diddy flip.....enough said. Learning how to avoid getting camped by his SHDL is also a necessity. And learn how to punish his phantasm. You have the potential to **** his recovery hard with diddy. You can peanut him out of the phantasm forcing a fire bird which is easy to edgehog, or you could do an OoS glide toss (blocking the phantasm and hitting him with the banana) if he tries to phantasm onto the stage, or you could even pull out your barrells if you want to get fancy and when he phantasms through you it'll knock them off and potentially nail him. Those are the main points so it's pretty straight forward besides that. Just practice against a falco and see what works for you and what doesn't is the big thing. I also find that having good timing to recatch all the bananas he reflects/throws back at you helps a lot too. Whether it be aerials, air dodges, or cartwheels.