ADELAIDE, Australia (Reuters)
Shane Warne has said Australia are in a good position to win the first Test against South Africa after his five-wicket haul helped his team to a useful lead after the third day.

Warne ran through the South African lower order on Sunday to finish with 5 for 113 as Steve Waugh's team finished 65 in front on the first innings after dismissing the visitors for 374 late in the day.

Batting a second time, the Australians added three without loss after surviving three hostile overs to stretch their lead to 68 with two days left on an Adelaide Oval pitch showing signs of breaking up.

"I'm very happy with the position we're in, we're almost 70 runs ahead with 10 wickets in hand and on a pitch that's deteriorating," Warne said.

"They're a very good side and anyone who underestimates South Africa isn't watching the right cricket ... but I'd still rather be in our position. The pitch is only going to get worse ... it's going to keep lower for the quick bowlers. It's going to be pretty hard to score on and hopefully the ball will spin a bit more as well."

He added: "It was starting to spin a lot at the end today and that was a pretty encouraging sign for me."

South African middle-order batsman Neil McKenzie top scored for the Proteas with 87 and while he said his team faced a difficult task trying to win, he said they were still a chance if they bowl the Australians out cheaply in the second innings.

"I think we've done quite nicely to get 374 from where we were and now it's just up to our bowlers to be stingy and bowl a good line and length," McKenzie said.

South Africa started the day at 101 for 2, still 338 behind Australia's massive total of 439. They looked to be in trouble when they slumped to 214 for six when Lance Klusener went after lunch but McKenzie and wicketkeeper Mark Boucher kept them in touch with a 141-partnership for the seventh wicket.

"We were obviously in a bit of trouble when Lance got bowled and it was quite tense throughout the day," McKenzie said. "Mark and I just took our time but when the second new ball came out we decided to be positive and we put on some quick runs."

They took the score along to 355 but when McKenzie was trapped lbw by part-timer Damien Martyn the last four South African wickets fell for 19 runs.

Warne was the main beneficiary, mopping up the last three South African batsmen to become the first Australian wrist spinner since Richie Benaud 40 years ago to take five wickets in an innings in an Adelaide Test.

"I've been a little bit frustrated this summer ... I thought I've bowled well without getting any real results," said Warne, who also moved past Pakistan's Wasim Akram into fourth place on the alltime wicket-takers list.

"My plan today was just to try to be as disciplined and patient as possible. The ball came out extremely well today and I was happy with my consistency.

"We know South Africa are always tough, they bat all the way down to number nine and they're always tough to get out. Their middle to lower order are the form players rather than the top so we knew it wasn't going to be easy."

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