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Michael Clarke completed a century and Matthew Hoggard took seven wickets as Australia made steady progress on day four of the second Test in Adelaide.
Hoggard finished with 7-109 - the second best figures by an England bowler at Adelaide - as the hosts reached 513 all out, with 19 overs left in the day in which to bowl at England.
In the 11th over Stuart Clark removed Alastair Cook, who was hit on the helmet while fielding at short leg earlier on, as the batsman edged a delivery slanted across him.
England closed the day on 58 for one - a lead of 97 - with just three sessions left in the match.
Clarke and Shane Warne combined in a 118-run partnership for the seventh wicket between lunch and tea, with the draw being the most likely result.
Clarke - playing only in the absence of the injured Shane Watson - made the most of the placid pitch to convert his overnight 30 not out into a first century against England and stake his claim for a regular place in the team.
He brought up the milestone in 183 balls with a punch into the off side off James Anderson, but injured a wrist in his celebration and had to have the physio come on to the field to take a look.
Warne, at the other end, was involved in several verbal exchanges with Geraint Jones and Kevin Pietersen, who was immediately brought into the attack in a bid to unsettle the leg-spinner.
But Warne still managed to score 43, frustrating England's bowlers for much of the afternoon.
Hoggard bowled magnificently to take his first five-wicket haul against Australia when he trapped Warne lbw on the stroke of tea, to at least give England supporters something to cheer about on a day of attritional cricket.
He continued bowling after the break and got his reward almost immediately when Clarke whipped the ball to Giles at short mid-wicket to end his excellent innings of 124.
Clark did not last long as he took a big swing at Hoggard and saw his leg stump removed, to give the Yorkshire paceman his seventh wicket of the innings.
James Anderson wrapped up the Australia innings by tempting Glenn McGrath to push at a swinging delivery and edge behind to Jones.
Hoggard now stands eighth in the list of England's all-time leading wicket-takers, with 231 scalps in 60 matches after overtaking Darren Gough.
Only 16 runs were scored in the first 40 minutes of the day as England's pace attack kept their discipline to frustrate Australia, who resumed on 312 for five.
Ashley Giles finally broke Australia's resistance when he had Adam Gilchrist caught at deep mid-wicket by Ian Bell for 64, his highest score at Adelaide.
Gilchrist, who had been frustrated by an inventive off-side field setting by Andrew Flintoff, finally broke free of his shackles with a pulled four off Hoggard in the 10th over of the day.
He had earlier tried to cut a ball that was too close to his body and saw it fall just short of Bell at gully, then, on 28, survived a strong lbw shout.
He made the most of the reprieves by hitting Steve Harmison, who had the crowd vocally behind him from the first ball he bowled, for two successive fours as he attempted to increase the scoring rate.
He reached his fifty from just 70 balls, after a slow start, which will have given him some confidence after his bad run of form against England.
However, Gilchrist's alliance with Clarke had eased Australia's nerves during a crucial first session, and Clarke and Warne batted with sufficient resilience to effectively stave off the threat of defeat hanging over Australia.
Flintoff reported a little discomfort in his left ankle but will take his place in the team on the final day.
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