Bermuda's final hope for glory in the Brut Gold Cup evaporated yesterday as Blythe Walker succumbed to the brilliance of American Ed Baird in an enthralling encounter in Hamilton Harbour.

It was a heart wrenching loss for Walker who led for the major part of the final race of the best-of-five series, but not at its all important conclusion.

At the finish a mere second separated the pair as the calm resolve and experience of Baird won over aganist the gritty determination put forth by the Bermudian.

As it turned out a single false move tendered by Walker proved fruitful for Baird, who appeared destined for an early flight home up until the final moment.

Walker led for three of the four legs, but as he rounded the windward mark near Albouy's Point and headed into the final stretch he allowed Baird favourable position to the outside, which set the stage for his ultimate demise.

Locked inside, Walker was helpless against Baird and once the former reacted to a fake jibe midway through the downwind leg, causing a loss in momentum, the race was Baird's for the taking and he gleefully obliged.

"Right at the top mark we were really close behind him with good speed and he turned into a jibe, which maybe is okay with the puff but not okay for having rights later in the leg,'' explained Baird, ranked number three in the world and seeded similar at this regatta. "So we just went wide, sailed a little past his transom and now we have starboard tack and so he has a problem and that means we have control of what happens throughout the rest of the leg.

"We just waited until we were a little close to the lay-line on the finish and had enough of his wind that we could slow him down and pass him just enough to beat him.'' For Baird it worked to his advantage being behind. However, he was well aware that the victory placed him in an unenviable position as public enemy number one.

The Floridian joked in saying that he had indeed given Walker every opportunity to win, especially during the final outing.

"This is the first time we've been public enemy number one, but you've got to give us a little credit because we made every effort to let those guys lead as much as possible and still let us somehow sneak into the next round, so I don't see how we can be that bad. Those guys sailed really well.

"You know, what happens a lot is when you're leading it's really difficult to keep defending against the other boat and have everything go smoothly.

"It doesn't matter who you are and it's a typical situation. Blythe wasn't really sure what we were going to do, but he knew if we did certain things he had to do certain things, but we were not going to tell him what we were going to do, so it's a tough position to be in and the worst position any competitor can be in is to be leading and then lose. We all hate that.'' "But I think all through our matches if you look at the different styles of sailing, we were doing a better job match racing and he was doing a better job sailing.'' Baird faces Sweden's Magnus Holmberg today in the quarter-finals, with both seeking to advance a step closer to what would be the first ever final for either.

A downtrodden Walker meanwhile reflected on the ill-fated last leg that erased any visions of grandeur he and his crew of Glen Astwood, Michael Tatem and Stephen King may have had.

"It's pretty disappointing. We had everything going for us and made a couple of minor mistakes and these guys are number three in the world and he's going to capitalise on any mistake you make, as he did,'' said Walker.

"We gave him a run for his money, it was the only match to go to five, so we're happy about that.'' In perhaps the biggest upset thus far Peter Holmberg, of hurricane stricken United States Virgin Islands emerged as the second qualifier to earn a berth in the final eight.

Holmberg, one of the acknowledged free-spirits at this year's event, turned the tables on Frenchman Thierry Peponnet for a 3-1 win to set up today's match-up against second seed and last year's losing finalist Peter Gilmour of Australia.

Entering the day locked at one win apiece, Holmberg wasted minimal effort in setting aside his French rival, cruising to a pair of wins.

Still, he was not satisfied and acknowledged that much improvement would be needed if he is to go any further.

"I feel real good. We're still not sailing perfect and have a few more things I need to sharpen up before I take on the next fellow, but I feel real good,'' said Holmberg. "The crew is working great, (but) the boats are so different that the fellows who adjust their styles to them quicker and adapt better tend to do fine. So we're happy with our adjustments, we're starting to feel comfortable in the boats and looking forward to the next set.'' Asked how he thought he might fare against the likes of a hardened match-racer such as Gilmour, who coached Japan's Nippon syndicate during the America's Cup and is known for his aggressiveness -- especially during the pre-start -- Holmberg was optimistic of his chances.

"I'm also known as an aggressive fellow, I'm not as experienced as him -- he's been in this game longer than me -- but what I'm going to key on is my team feeling comfortable,'' said Holmberg.

"We've got nothing to lose. We're further along than maybe we should have been, so maybe we're the underdogs. I like that style -- we go in there knowing we've got a fight on our hands and if we wake up feeling sharp who knows, a small ax can work good in these fields, man.'' Gilmour reached the final eight in beating Great Britain's Andy Beadsworth 3-1, while Magnus Holmberg ousted Kiwi John Cutler 3-1.

Also set for today is the much anticipated Russell Coutts versus Paul Cayard match-up in a reprise of the America's Cup final in Group One, while Chris Law battles Roy Heiner.

ELIMINATED -- Bermuda's Blythe Walker (far left) was ousted from the Gold Cup, falling to American Ed Baird in the first round yesterday. Pictured on board with Walker are (left to right) Michael Tatem, Glen Astwood and Stephen King.