I totally agree with Diriana's approach... If, however, you happen to be struggling to put out enough dps to down Diago before he gets into healing and you find yourself out of interrupts to stop said healing, dropping combat (disappearing act for scoundrels) will cause him to attack whichever of the ladies you chose, and eventually aggro them.
Since both glowstick wielders are invincible (locked at like 9200 health until you engage them), you can afford to sit back, let them take the damage from both opponents, and use their added damage on Diago (once they're locked on) to easily nuke him down... then follow the above advice for the sith or jedi.
If, say, you're a healer or your companion goes down early, this may give you the second chance you need...
For those having problems soloing this q, here's how i did it:
I chose light side points, which made me fight the sith and Diago Hixan. As fast as possible, nuke down Diago. He is stunned for a long time by our jedi friend, enough time to take him down to about 1-2k hp. When he wakes up, interrupt his heals. When he is down, you should be able to recouperate. Before trying to kill the sith, put your companion on passive. Then start nuking her. When she reaches about 30%, she will aggroe you. Have your companion taunt her off you, and just nuke her down.
I assume the same works for choosing the dark points option, thus fighting the jedi and Diago.