The New Zealand part-timers appeared completely out of their depth in Japan 12 months ago when they conceded two goals in the first four minutes in a 3-1 loss to Iranian side Sepahan.

But the O-League champions put on a far more resolute display against Adelaide at the Tokyo National Stadium, absorbing tremendous pressure from the Australians before taking a shock lead through Paul Seaman on 34 minutes.

There was to be no dream finish though, with Daniel Mullen equalising five minutes later - and Adelaide captain Travis Dodd then glancing in a Paul Reid free-kick seven minutes from time to send the A-League outfit through to the quarter-finals.

"One of the key things we came here to do was have a bit of redemption from last year," said Milicich.

"I think we categorically gained that and we also categorically proved that Oceania deserve to be at this tournament.

"If we'd been a little bit cleverer or perhaps luckier with some of our counter-attacks, particularly in the second half, then we might have gone through.

"We've made great strides over the past 12 months - and I think everyone saw that."

Although his team failed to impress, Adelaide coach Aurelio Vidmar was relieved to negotiate the first step in the tournament and set up a rematch against Gamba Osaka - who defeated the Reds in last month's Asian Champions League final.

"It was a very difficult game. I have to give a lot of credit to Waitakere United, who made life very difficult for us," said Vidmar.

"They're a smart footballing team with a smart coach, and you can see that they've learnt a lot.

"They knew exactly how to play. They managed to get a goal, and we had to learn to be a little bit patient. I was delighted that we came from behind.

"However, we know that we're going to have to play better if we're going to defeat Gamba Osaka."