Australia captain Ricky Ponting admitted his side deserved to lose the second Test against England at Lord's.
"We've been outplayed from the first morning," he said after the 115-run defeat. "We've been chasing our tails.
"We had our chances with the bat on day two but we came up short. I'm pretty proud how we stuck at it and to get over 400 runs is a good effort.
"There are three Tests to go. One Test match doesn't make a summer. We're 1-0 down but there's time to bounce back."
The Australians had looked set to go into the Lord's Test with a 1-0 advantage, only for England's final wicket pair to stave off the threat of defeat in the opening match of the series at Cardiff.
Ponting dismissed suggestions that his team had been affected by their failure to force home victory there, however, and insisted: "It is nothing to do with Cardiff.
"England played pretty well. There is no hangover from Cardiff when we played so well.
"It was only last week we were jumping about how well we played. A week in sport can be a long time.
"We have to look at the positives but quite a few negatives - including our fielding. There are lots of little things to look at and we have to rectify those things."
Fast bowler Brett Lee, who was ruled out of the first two matches with a side injury, could return for the third Test at Edgbaston starting on 30 July.
"There will be some discussions on selections but nothing much to worry about," added Ponting.
As home supporters had hoped, Andrew Flintoff played a significant role for England in his final Test at Lord's, taking 5-92.
"He bowled well and that's what you expect from him," said Ponting. "He'll keep running in as long as the captain wants him to.
"We played him well in Cardiff and today he bowled beautifully. With the game on the line you expect those guys to stand up."
By stumps on day two Ponting saw his side slip to 156-8 in reply to England's first innings 425.
Although adding defiantly: "Our bowling in the second innings was as good as it's been through the series." The touring skipper conceded: "The first two days is where the game was decided."
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