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MELBOURNE (AFP) – Defending champion Novak Djokovic hit top gear in a sparkling Australian Open performance on Wednesday as former winners Roger Federer and Marat Safin set up the clash of the third round.

Taiwan's Lu Yen-Hsun produced the biggest shock so far as he ousted 10th seed David Nalbandian, while Spanish number two David Ferrer, Croatia's Marin Cilic and Czech player Tomas Berdych made it safely through.

Djokovic was in irresistible form against Jeremy Chardy of France, winning 7-5, 6-1, 6-3 as he shrugged off an indifferent start to the year.

"I think I'm playing better and better every match, so this is really important. This is something that I planned to do," he said.

"If I keep the high level of performance and a good game, I will hopefully get far in the tournament."

Djokovic next faces Bosnian-born American Amer Delic, who appealed for local fans to keep a lid on simmering ethnic tensions between Serbian, Bosnian and Croatian fans.

Rival groups of fans taunted each other during Delic's match with France's Paul-Henri Mathieu, raising fears of a return of sectarian rioting which marred the last two editions.

"Today was bad when the other (fans) came across -- I'm just hoping with Novak that it doesn't turn into World War III," Delic said.

Meanwhile Federer, seeking a record-equalling 14th Grand Slam, turned on the style against qualifier Evgeny Korolev to set up a mouth-watering third-round clash with long-time foe Safin.

The two former number ones, who have never played so early at a Grand Slam, have a memorable history here with Federer winning the 2004 final but being ousted in a classic semi by Safin a year later.

"We go way back. Him, of course, being a former number one, same as me, and a former Grand Slam champion, it's an intriguing match-up," Federer said.

"Back when he was really at his very best, we had similar personalities growing up. I sort of chilled out and he kept on going. But it was always a good match-up."

Federer has won their previous three meetings, including last year's Wimbledon semi-final, and holds a 9-2 record against the Russian.

Safin also said he was relishing Friday's clash, which promises to be the pick of the third round.

"Unfortunately I haven't won a lot of matches against him, but I'm looking forward to it," said the Russian, who beat Spain's Guillermo Garcia-Lopez 7-5, 6-2, 6-2.

"It's another chance. I have nothing to lose. I'm going to go for it -- whatever comes, comes."

Ferrer dismissed Slovakian veteran Dominik Hrbaty in straight sets, while Cilic's potential flashpoint match against Serbian Janko Tipsarevic passed off peacefully.

Tommy Robredo, Mardy Fish and Swiss number two Stanislas Wawrinka were the other seeds through.

American seventh seed Andy Roddick was playing Xavier Malisse and Australian sensation Bernard Tomic, 16, was taking centre stage for the day's late match with Luxembourg's Gilles Muller.

World number one Rafael Nadal is in the other half of the draw along with British hope Andy Murray.

MELBOURNE – Spanish world number one Rafael Nadal began his Australian Open in awesome fashion on Tuesday while Andy Murray enjoyed the easiest of starts to his quest for a first Grand Slam title.

Last year's runner-up Jo-Wilfried Tsonga led a parade of seeds into round two but Australian hopes took a hit as Lleyton Hewitt crashed out in his worst result since 2002.

The new-look Nadal, who replaced his usual vest and baggy pants with T-shirt and above-knee shorts, destroyed Belgium's Christophe Rochus in the mismatch of round one.

Rochus was unable to get on the scoreboard until the ninth game as Nadal dismissed any concerns about his ongoing knee problems to win 6-0, 6-2, 6-2 in one hour and 17 minutes.

Nadal is starting his first season ranked top as he bids to add a maiden Australian Open title to his Wimbledon and French Open crowns.

"I'm just trying to improve and be humble because every match is different," he told the crowd.

"I'm very happy because I'm over the injury and at one of the greatest tournaments in the world."

Earlier Murray was handed his first-round win when Romania's Andrei Pavel retired with a long-standing back injury and later quit tennis for good.

"Obviously you don't want to finish a match like that. Andrei's been having problems with his back for a year," said the world number four, who is seeking Britain's first Grand Slam win in 73 years.

"It's unfortunate he had to stop but I felt like I was hitting the ball well."

American James Blake overcame dogged resistance from Canadian qualifier Frank Dancevic, as Gilles Simon, Gael Monfils and Richard Gasquet completed a good day for France.

"You can't get a much more exciting three-setter," Blake said. "It was a little too exciting but he played some great tennis."

Hewitt's comeback from injury stalled but he produced some typically battling tennis in a five-set defeat to Fernando Gonzalez.

The former number one refused to contemplate retirement and insisted he was on track for a return to the top 10.

"He's a tough player to play against for anyone, even the best guys like Roger (Federer), Rafa (Nadal), purely because he wants to play on his terms," Hewitt said.

French livewire Tsonga electrified Melbourne Park with his run to last year's final and he was again impressive winning 6-4, 6-4, 6-0 against Juan Monaco, shrugging off a recent back injury.

"I try to play my best every time -- I just try to be as good as I can be," he said.

Radek Stepanek, Ivo Karlovic, Igor Andreev and Nicolas Almagro were the other seeds through along with Jurgen Melzer, who killed off Japanese prodigy Kei Nishikori.

"No, I didn't have any pressure because, of course, he's good and he's seeded. I just didn't play well today," Nishikori said.

In the other half of the draw, three-time winner Roger Federer plays Russian Evgeny Korolev while defending champion Novak Djokovic faces Jeremy Chardy of France.