INDIANAPOLIS -- Argentina drew first blood. But it was Yugoslavia that delivered the knockout blow to USA Basketball.

In an intense battle that wasn't expected until the gold medal game, Yugoslavia battled back from a 10-point fourth quarter deficit to defeat the United States 81-78 on Thursday. The loss kicks Team USA out of medal contention.

"It's just a great win," Peja Stojakovic said after the game. "We had to fight. We came out as a team and kept our intensity up. You're not going to beat the Dream Team every day. It really helped us that Argentina won first. I think they doubted themselves and we took advantage."

To add insult to injury, it was a non-NBA player, Milan Gurovic, who put the dagger in Team USA's heart. Gurovic was 3-for-3 from the 3-point line in the fourth including a huge 3 with 58 second left to put Team Yugo up by four. Two of Yugoslavia's NBA players, Predrag Drobjnak and Vladimir Radmanovic, never even got in the game.

The humiliation for the U.S. just won't quit. The team now is forced to play a consolation game Friday and Saturday while New Zealand, a team the United States defeated by 50 points, gets to play Yugoslavia Saturday for a chance at the gold medal.

"Obviously it's embarrassing," Andre Miller said after the game. "We're out of it. We come here to represent our country and now all we can do is play for fourth or fifth place."

"It's tough to swallow for me," Paul Pierce said. "I'm very disappointed in the fact that we let our country down -- on the U.S. soil."

Coach George Karl, who was on the verge of tears at one point during the post-game news conference, refused to make excuses for his team. "I like my team. We didn't have the edge or the cleverness that other teams with more practice had, but we put a team on the floor capable of winning."

How did this loss compare to Wednesday night's drubbing by Argentina? "Last night I was more discouraged. Tonight I'm disappointed. But we can walk off the court proud."

Once again Team USA's home-court advantage was an illusion. Despite the huge stakes and the attractive match-up, American fans stayed away as the game drew just 5,362 people. Yugoslavian fans outnumbered American fans 3 to 1. Reggie Miller tried to get the fans chanting U-S-A, U-S-A several times but the chant of YU-GO-SLAVIA quickly drowned them out.

By the end of the game, Team USA could have been playing in Belgrade.

"It didn't feel like I was playing in America," Stojakovic said. "I felt like I was playing at home. Our people appreciate us. Playing for them brings us joy."

Andre Miller wondered where all of the fans went. "The support wasn't there from the start. We can't get our fans to come when it's on our home turf. I'm not sure where they were. But the crowd doesn't decide what happens on the court. We decide that."

For once, the U.S. team didn't wait until the second half to start playing hard. Karl wanted defensive intensity from the start and he finally got it. Yugoslavia roared out of the gate grabbing a 9-0 lead. But intense defensive pressure and an offensive outburst by the Millers, Reggie and Andre, allowed the United States to grab a 14-13 lead with 4:28 left in the first quarter.

While the defense was clicking, the American offense struggled mightily. Paul Pierce, the team's best scorer, picked up two quick fouls and played just five minutes in the first half. With Pierce out of the game, the U.S. team could never find an offensive rhythm. Team USA scored only two points in the first 3:28 in the second quarter managed to score just 36 points in the first half. By halftime, the team was shooting just 39.3 percent for the field and had just four fast break points.

"You can't play the same way you do in the NBA," Andre Miller said. "You've got to move the ball around more. We got caught holding on to the ball too long today."

Vlade Divac seemed to be saving his best for the United States. After averaging just 7.7 ppg in the first six games, Divac exploded for 16 points and five rebounds in the first half. Divac's play helped Yugoslavia outscore the U.S. 24 to 10 in the paint and 12 to 4 on second chance points.

Once again it was the Paul Pierce show in the third quarter. A quick 3 followed by a coast-to-coast dunk and another drive that drew a foul in traffic put the U.S. team ahead 47-42 with 6:12 to go in the third. Pierce ended the quarter with 14 points, three rebounds and one assist. Team USA had nine fast break points and gave up only two points in the paint with Divac out most of the quarter.

Team USA built a 10-point lead in the fourth before Yugoslavia made their run, hitting a barrage of 3-pointers and tying the game with 2:21 to go in the fourth. The U.S. team went scoreless for nearly four minutes during the run.

At the end of the game, the rules of NBA playoff basketball applied.

"At the end you need key stops and to knock down shots," Michael Finley said. "Yugoslavia made theirs. We didn't."

Yugoslavia was clutch in the fourth. The team didn't record one turnover and was 5 for 6 from the 3-point line and 10 for 13 from the free throw line. Over the last two minutes Yugoslavia made seven consecutive free throws including four by Marko Jaric with less than 30 seconds to go in the game.

The U.S. team, on the other hand, was 0-5 from the free thow line in the fourth, including two huge misses by Jermaine O'Neal with the 2:09 to go.

After the game, Antonio Davis tried to piece together what this team had learned. "Coming into this thing, I don't think we realized how important it is to the other teams and how important it should've been to us, not only to represent our country, but represent the game of basketball . . . Our young people today and our coaches of toda have to go out and teach guys the game of basketball the right way. I think if we continue to do that we'll grow as much as they've grown."

Notes
The U.S. will play Puerto Rico in the consolation bracket tomorrow at 9 p.m. EST. Yugoslavia, Germany, Argentina and New Zealand advanced to the semi-finals. . .Shawn Marion sat out the game with a pulled groin. Elton Brand played just three minutes and Karl once again refused to put Raef LaFrentz or Jay Williams in the game.

Chad Ford writes the daily NBA Insider column for ESPN Insider. To get a free 30-day trial, click here.