Wayne Rooney was sent off as England's World Cup dream died in Gelsenkirchen as Portugal won a penalty shootout 3-1 after the game had ended goalless after extra-time
Sven-Goran Eriksson brought in the fit-again Gary Neville, with Owen Hargreaves moving into midfield and Michael Carrick dropping to the bench.Cristiano Ronaldo was fit to start for Portugal, while Tiago earned a spot in midfield with both Costinha and Deco suspended.
Nine minutes in Wayne Rooney found space 25 yards out and drilled in a low-right-footer, but Portugal goalkeeper Ricardo was right behind it.
Ronaldo responded with a similar effort straight away at the other end, Paul Robinson was down smartly to collect.
After 17 minutes, a long throw by Gary Neville caused chaos, Rooney fed Frank Lampard, but his cut-back was cleared away by Miguel.
Two minutes later Luis Figo's raking long pass found Ronaldo, he twisted and turned, but blazed his shot over the crossbar from the edge of the area.
On the half-hour John Terry was booked and on the stroke of half-time Armando Petit was also cautioned, with both men ruled out of a potential semi-final.
Soon after half-time England skipper David Beckham had to limp off with an ankle injury, but their afternoon got even worse soon after as Rooney was red-carded after a clash with Ricardo Carvalho.
An initial stamp and a slight push on Ronaldo added up to a dismissal by Argentinian referee Mr Elizondo.
Joe Cole had prodded a shot over from 15 yards a couple of minutes earlier, after sub Aaron Lennon skipped clear of a couple of defenders.
Portugal struggled to make the extra man count, before 12 minutes from time Paul Robinson made a flying save to deny Figo and Rio Ferdinand made an excellent block to stop Nuno Valente's run.
Hugo Viana tested Robinson with a couple of long-range efforts, before England almost snatched a dramatic late winner, Lampard's effort was spilled by Ricardo, but he recovered to grab Lennon's weak follow-up effort.
In the first period of extra-time Peter Crouch started to make his presence felt, while Robinson had to make a smart low save from Simao as Portugal made most of the running.
Portugal continued to huff and puff through the second period of extra-time, with Helder Postiga seeing a header ruled out for offside before penalties loomed into view.
That only brought heartbreak as Lampard, Gerrard and Jamie Carragher were denied by Ricardo, before Ronaldo slotted home the decisive spot-kick.