SAILING/America's Cup: Italian syndicate Prada, the defending champions of the America's Cup challengers series, have sent their newest hi-tech boat for modifications in a setback to their campaign.

The Italians' $55 million challenge looked to be in disarray after they demoted their principal boat designer Doug Peterson last week over differences of opinion on the development of their two $5 million America's Cup class yachts.

But they breathed some life into their campaign when they beat Sweden's Victory Challenge by two minutes and 35 seconds in the only race completed in Auckland, New Zealand, yesterday. Three other races were abandoned for lack of wind.

Prada now have two points from their first five races in round robin one and are two behind leaders Alinghi of Switzerland.

The Italians have said they will send Luna Rossa ITA 80, the second of their two $5 million, 2003-generation yachts, to an Auckland boatyard for modifications to its bow and hull.

Prada are using their first boat ITA 74 through the two round robins of the challenger series but hope to use ITA 80 during the later stages of the Louis Vuitton Cup.

The nine challengers will race each other once in each of two round robins to determine which eight progress to the quarter-finals. The winners of the Louis Vuitton Cup will sail against holders Team New Zealand in the America's Cup from February 15th, 2003.

Earlier the GBR Challenge Wight Lightning was saved from an embarrassing defeat by a fading breeze. The race with Mescalzone Latino, which has yet to win a race in the America's Cup qualifying series, was abandoned with the Italians leading and heading for the final mark, which they did not round within the maximum time for the leg.