BBC News 24's Mike Bushell reports

The tourists, whose batsmen were bamboozled throughout the second day, were skittled for 220 - giving Australia a massive first innings lead of 102.

Australia's openers then survived the last seven overs of the day to reach 13 for no wicket at the close.

Stuart MacGill was the star of the show, overshadowing fellow leg-spinner Shane Warne with a thoroughly deserved five-wicket haul.

MacGill scooped a superb five-wicket haul

But superstar Warne was not to be denied his moment in the limelight as, in typically spectacular fashion, he took a wicket with his fourth ball on his return to Test cricket after nine months out following shoulder surgery.

Off-spinner Colin Miller also claimed two scalps and the ever reliable paceman Glenn McGrath added two more.

BBC Radio 5 Live's Pat Murphy reports

For England it was a case of what might have been.

Most of the batsmen played themselves in, only to lose their wickets to loose shots, with none of them making it past the 50 mark.

John Crawley, who looked the most comfortable against some incisive spin on a turning pitch, top-scored with 44 after being left to farm the tail in a damage limitation exercise.

Mark Butcher made 36 and Nasser Hussain hit 42, but England's inability to put together a decent partnership was to cost them dearly.

Stewart troops off after being first man out

The tourists began the day in reply to Australia's 322, a total that would have been far more formidable but for Darren Gough's stunning hat-trick just before the close of day one.

But McGrath was in typically fiery mood at the start of the England innings and was given his reward when he took his 200th Test wicket in the sixth over of the morning.

Graham Gooch: "I think 300 would have been a good score" (BBC Radio 5 Live)

A frustrated Alec Stewart was tempted into a drive off a wide delivery and a sharp chance was claimed by Warne in the slips at the second attempt.

Instant impact for wonder Warne

Warne then cemented his reputation as England's prime tormentor of recent years with a headline-grabbing reintroduction to the international game.

A capacity crowd had to wait until the 22nd over of the day before their hero bowled his first over in Tests since his long lay-off. But what an over it proved to be.

David Lloyd: "We did need that big innings" (BBC Radio 5 Live)

Butcher smashed Warne's second ball bullishly through the covers for four - but any ideas England might have had that the world's best spinner was ring-rusty were immediately dashed as a fizzing delivery trapped Butcher leg before back in his crease.

McGrath came back into the attack after lunch and claimed his second victim when Mark Ramprakash seemed to run out of patience and sent a loose drive straight to MacGill at mid-off for 14.

Hussain was dismissed after steadily building 42

Ramprakash's departure brought Graeme Hick to the wicket and England's great enigma was in no mood to be intimidated by Warne's awesome reputation.

Hick launched the spinner for a huge six back over the bowler's head in an over that claimed 11 runs and led to Warne's withdrawal from the attack.

At the other end Nasser Hussain was building a painstaking innings - although he never looked too comfortable against the leg-spinners and appeared unable to read the googly from either MacGill or Warne.

Hick falls to loose shot

Stuart MacGill: "I've had so many plays and misses" (BBC Radio 5 Live)

But just when Hick looked to be well set for a decent score he was gone for 23 in sorry style, slashing a poor ball from MacGill to Warne, who took another good catch at short extra cover.

And the very next over England were in even deeper trouble.

Hussain, who carried so much of the tourists' hopes, turned a ball from Miller into the safe hands of Mark Waugh close in on the off-side and was dismissed for 42.

The drip-drip punishment continued after tea.

First Warren Hegg was bowled through the gate by a turning ball from Miller for 15 and then Alex Tudor, after launching a few lusty blows, was deceived by MacGill's wrong'un and went for 14.

Crawley, who had desperately tried to keep England within reach of Australia's total, was drawn forward to a MacGill delivery and edged the ball to Mark Taylor in the slips.

Darren Gough is adjudged leg-before, in debatable fashion (Radio 4)

Gough, looking to add some heroics with the bat to his awesome achievements with the ball, went the very same over, adjudged leg-before for another duck.

With only last man Peter Such for company, Dean Headley tried to eke out a few more runs - but he was caught in the deep to give MacGill his fifth wicket of the innings.

Scorecard:

Australia second innings:
M Slater not out 11
M Taylor not out 2
Extras 0
Total (for no wicket, 7 overs) 13

Bowling: Headley 2-1-4-0, Gough 3-1-3-0, Such 2-0-6-0

England first innings:
M Butcher lbw b Warne 36
A Stewart c Warne b McGrath 3
N Hussain c M Waugh b Miller 42
M Ramprakash c MacGill b McGrath 14
G Hick c Warne b MacGill 23
J Crawley not out 44
W Hegg b Miller 15
A Tudor b MacGill 14
D Headley c McGrath b MacGill 8
D Gough lbw b MacGill 0
P Such not out 0
Extras 21
Total (80.1 overs) 220

Fall: 1-18, 2-56, 3-88, 4-137, 5-139, 6-171, 7-204, 8-213, 9-213

Bowling: McGrath 17-7-35-2, Miller 23-6-45-2, MacGill 20.1-2-57-5, Warne 20-4-67-1

Australia first innings:
M Taylor c Hick b Headley 2
M Slater c Hegg b Headley 18
J Langer c Ramprakash b Tudor 26
M Waugh c Hegg b Headley 121
S Waugh b Such 96
D Lehmann c Hussain b Tudor 32
I Healy c Hegg b Gough 14
S Warne not out 2
S MacGill b Gough 0
C Miller b Gough 0
G McGrath c Hick b Headley 0

Extras 11
Total (all out, 87.3 overs) 322

Fall: 1-4, 2-52, 3-52, 4-242, 5-284, 6-319, 7-321, 8-321, 9-321

Bowling: Gough 17-3-61-3, Headley 19.3-3-62-4, Tudor 12-1-64-2, Such 24-6-77-1, Ramprakash 15-0-56-0