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New Zealand remain confident of a second cricket test victory despite a remarkable day where they gave England a big let off to leave the match in the balance.
Seventeen wickets tumbled on the third day at a cold, breezy Old Trafford, as England closed at 76 for
one in their second innings, needing another 218 to win with captain Michael Vaughan and Andrew Strauss at the crease.
On a day when left-arm spinners Daniel Vettori and Monty Panesar dominated, New Zealand blew a 179-run first innings lead as they collapsed for 114 in just 41.2 overs in their second innings.
It set up a gripping and potentially series-deciding fourth day with showers forecast, and a bleak outlook for day five.
Only once in 93 tests at Old Trafford have a team chased down more than 200 to win in the fourth innings.
England scored 231 for three against the West Indies in 2004, and the history books leave the tourists still upbeat.
"At the moment we're certainly in front, history says that anyway and I think we are," seamer Iain O'Brien said.
"We're pretty confident. We bowled really well this morning and got a little bit loose this afternoon and evening, so we'll get back to what we did in the morning session and hopefully come back out on top."
O'Brien insisted the nature of the pitch was a crucial factor in their batting collapse.
Panesar took test best figures of six for 37 as the surface offered turn and variable bounce, after Vettori's five for 66 crippled England's first innings as they collapsed for 202.
It was the familiar third innings jitters for New Zealand, who folded in just 167 minutes on Panesar's favourite ground where he'd taken 18 wickets from his previous two tests.
Jamie How and James Marshall were the only batsmen to top 20, but at 85 for two it was looking like a 400-plus target for the hosts.
The last seven wickets then fell for 64 as Panesar made the ball turn and jump, and Australian umpire Simon Taufel obliged with four leg before wicket decisions with the batsmen looking uncertain.
First innings centurymaker Ross Taylor batted a cautious 68 minutes for 15 before being trapped in front to give Panesar his 100th wicket in his 28th test.
Brendon McCullum's patience lasted just three deliveries before he swung across the line.
Injuries also hampered New Zealand, with a still groggy Daniel Flynn excused to return to the hotel after the tooth-removing hit to the face from James Anderson, while Jacob Oram jarred his neck after landing on his right shoulder during warmup drills.
Oram shifted down to No 7 and looked in pain as he turned to take strike, before his nemesis Ryan Sidebottom removed him caught behind for seven.
Panesar felt England had a slight advantage but was wary of Vettori's threat.
"With the way that pitch is, it's tough to bat on, but I think this session after tea was important to us that we didn't lose too many wickets," Panesar said.
"We set ourselves a good base, hopefully we can counteract the variation and knock the runs off. At the minute we're probably slightly ahead."
Vettori's heroics and some capable backup from O'Brien helped wrap up England's first innings before lunch as the final six wickets fell for 50 runs.
England staggered past the follow-on mark of 182 thanks to No 9 Stuart Broad, who lifted the hosts from 180 for nine with a brisk 30 before Kyle Mills ended it.
It was Vettori's second consecutive five-wicket haul and his best figures against England, topping his five for 69 at Lord's, and his 15th five-bag in test cricket.
O'Brien was a handy foil for his captain into the wind, extracting generous seam movement to end with three for 49 off 23, but Chris Martin and Mills struggled with the ball not swinging.
- NZPA
