"I can just imagine if we stayed together what we would be doing," Serbian center forward Dusko Pijetlovic said.

Indeed, if Yugoslavia were still intact, the other teams might very well be playing for second place at Yingdong Natatorium. Yugoslavia won seven Olympic medals in water polo before splitting into independent republics beginning in 1991. Though that country's decades-long dissolution destroyed its powerful program, it spawned three new teams, strengthening the entire field - call it a Balkan bounty.

"It's not surprising because we're investing very much in water polo," Croatian coach Ratko Rudic said. "We're investing in the kids. We have some of the best training programs. We have the best competition."

Together, Serbia and Montenegro won a silver medal in water polo in Athens in 2004. Apart, they finished 1-2 at the European championships in July and came to Beijing as two of the favourites to win the gold medal.

"It really shows how much talent we have in our country," Pijetlovic said. "We keep splitting and just keep getting stronger."

But it hasn't been as easy as expected.

Serbia lost to Croatia by three goals and scored only four times in a low-scoring victory against the United States. The Serbs could have gotten back on track Monday but lost 13-12 to Italy - a game some say they threw to get a more favourable draw in the next round.

Had Serbia won, it would have been in the same bracket as reigning European champion Montenegro and two-time defending gold medallist Hungary. A loss meant Serbia would face Spain and the United States.

Serbian coach Dejan Udovicic denied any mischief, saying his team has been inconsistent the entire tournament.

"We are tired," Udovicic said. "I am the coach, and I don't how to solve the problem. They look very tired. This is the most problem."

Udovicic also pointed out that his team is without star player Danilo Ikodinovic, who was badly injured in a June motorcycle accident.

"Now, some players are playing so many minutes in the game," Udovicic said. "We can't change the players as often as we usually do, and now they look tired."

Montenegro didn't make any excuses for its third-place finish in Group A. Montenegro tied Hungary to open the Olympics and did the same against Australia on Monday to snag the final quarterfinal spot.

"It is a really big deal for us because we separated from Serbia two years ago, and we've made a very good team," Montenegro center Milan Ticic said. "We've won European championships and had a lot of success and now we're one of the top six Olympic teams. It says a lot for our team and our country."

Montenegro plays Croatia next. The Croats, who were upset by the United States and finished a stunning second in group play, surely will want revenge after losing to Montenegro in the European championship last month.

But Croatian captain Zdeslav Vrdoljak said the rivalry won't be nearly as intense as in the past, when bitter ethnic conflicts were fresh in players' minds, inciting some of the dirtiest battles ever seen in the sport.