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The Spaniard, who has not won two successive matches since Wimbledon, was beaten 6-3 6-1 by the Peruvian, who goes on to face Andrei Pavel.

Former world number one Ferrero has had a miserable season, blighted by injury, and has slipped to 33 in the rankings.

Seventh seed Joachim Johansson edged past Guillermo Canas of Argentina 7-6 (7-3) 7-5 and plays Antony Dupuis next.

"I played badly and Luis played regular," said Ferrero.

"I'm not at my level. Not playing many games hasn't helped. You lack confidence when you don't win many games."

The Spaniard also admitted that he is still adjusting to a recent change of racket manufacturer.

"It takes time to adapt to a new racket," said Ferrero.

"You have to be better prepared."

It's the perfect beginning to a tournament, couldn't be better Marat Safin

In late matches, 14th seed Vince Spadea beat Spanish teenager Rafael Nadal 6-4 4-6 6-3, and eighth seed Tommy Robredo saw off Robby Ginepri 6-4 3-6 6-3.

Earlier, Marat Safin made round three with a 7-5 6-7 (5-7) 6-3 victory over Spain's Feliciano Lopez.

Lopez came into the match in good form, having won in Vienna last week, and with vocal support from the home crowd.

Safin is still trying to find his best form after injury problems but fired 17 aces as the fast conditions helped his game.

"I never win at altitude," said the Russian. "It's the perfect beginning to a tournament, couldn't be better."

The decisive break came in game eight of the second set, and Safin goes on to meet Stefan Koubek in the last 16.

Thailand's Paradorn Srichaphan claimed his first career triumph over Alex Corretja, beating him 7-6 (7/5) 6-3.

He will next take on Argentine fourth seed David Nalbandian on Thursday.

"It was tough to play Alex, especially in Spain, it's always difficult to play the old man," joked the Thai. "But I'm happy to finally have a win."

Corretja admitted: "I'm going through a weak period, but I'll try to recover."

Croatia's Ivan Ljubicic thrashed 13th seed Rainer Schuettler of Germany 6-3 6-0 to set up a clash with Tim Henman, who beat Albert Costa 6-4 6-2.

Fernando Gonzalez was another surprise loser, Austrian Koubek beating the 15th seed 6-1 3-6 7-6 (7-5).

And fellow Chilean, and number five seed, also made an early exit as American Taylor Dent came through 6-3 3-6 6-3.