Australia dominated the third day's play at Lord's and should go 1-0 up unless the weather rescues England.
TALKING POINT
Jones made two important errors behind the stumps
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England's fielding was woeful.
Three catches were dropped during a dismal morning which effectively sealed England's fate.
Geraint Jones was responsible for two of the misses - one, to his right, a catch that a club wicket-keeper would take nine times out of 10.
This was also a problem in South Africa during the winter and, although his batting is definitely a bonus, the fact is that when you are playing against the best team in the world, you can't have a wicket-keeper that is a liability.
I doubt England will drop him after this Test, but his position will have to come under close scrutiny.
Andrew Flintoff also put down a sitter at slip and the bowler on each occasion was Simon Jones, who was out of luck on day two when Kevin Pietersen dropped Michael Clarke.
Jones finished with 1-69 from 18 overs, showing how deceptive bowling figures can sometimes be.
PLAYER OF THE DAY
Shane Warne bowled brilliantly but the 67 made by Simon Katich, assisted by Jason Gillespie and England's sloppy fielding, was of great significance for Australia.
The pressure was on the left-hander because England got the early wicket they were after when Giles brilliantly ran out Lee when only 10 runs had been added.
This was just the start they needed because they had to keep Australia's lead to less than 350, but Katich cashed in on some short, wide offerings from Flintoff, who bowled poorly, while Gillespie calmly defended everything that came his way.
Even Glenn McGrath managed to score 20 not out as 105 runs were added for the last three wickets.
KEY MOMENT
Lee's dismissal of Strauss was the breakthrough Australia wanted
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This came when Brett Lee finally broke the opening partnership of 80 between Marcus Trescothick and Andrew Strauss.
Lee bowled furiously from the Pavilion End, combining raw pace with a healthy smattering of bouncers.
Strauss got in a tangle with a short ball heading for his throat, and a tentative attempt at avoiding it resulted in an excellent running, diving catch by the bowler.
This brought in the out-of-sorts Michael Vaughan, and Australia knew they were on their way to victory.
DAY FOUR - ENGLAND'S PROSPECTS
None. The best they can hope for is two days of rain.