Setting Valley of the end
Character Versions Edo Itachi and Nagato.
Yep good battle.
I suspect Madara's over confidence could be his downfall, especially if he underestimates Itachi and doesn't know about Itachi's Sword of Totsuka (No one in Akatsuki knew he had it so I doubt prep time would give Madara knowledge about it).
Although having said that, if Madara's fighting seriously from the start then he'd probably take this.
I see no plausible way for the team to win here, as already stated Madara has pretty much all of their abilities to a much greater extent. I don't think over confidence would be a downfall of his, he's not over confident to the point of foolish, we saw that when he fought against the Kages. I really don't see Nagato and Itachi being a threat to Madara
Edo or no, I would still side with Madara. Not only does he essentially have both of their abilities combined, but to an even greater extent, very powerful as they are. And he knows how to deactivate the Edo tensei which would defeat them automatically. Because of this, the Edo might be a disadvantage for the team in this particular case.
Like I said before, it's unlikely Madara knows that Itachi has both the Sword of Totsuka and the Yata Mirror which could give Itachi and Pein an edge. Knowing Madara he would react in a manner very similar to how Orochimaru did, before he too got screwed over by the Sword. Plus Itachi's a genius and you just know if anyone could come up with an effective strategy to even stand a chance against the behemoth that is Madara, it would be Itachi.
Although I know for a fact that the Sword of Totsuka will likely be the only effective way in which to deal with him because, ashas been stated above, Madara easily outclasses both of them in terms of power and jutsus.