Hosts France and other 2003 World Cup quarter finalists England, Ireland, Scotland and Wales qualified automatically.
The teams were ranked according to their division in the European Nations Cup, taking into account the relegations and promotions at the end of the previous competition.
The eight teams from divisions 3B (apart from newly relegated from 3A Hungary) and 3C (apart from Azerbaijan and Armenia) played each other in four two-legged playoffs.
The four Round 1 winners, Hungary, and the fifteen teams from divisions 2A, 2B and 3A were drawn into four groups of five.
The winner of Round 4 Playoff 1, the third placed team from Division 1 2005/06 and Six Nations competitor Italy form Pool A.
The winner of Round 4 Playoff 2 and the first and second placed teams from Division 1 2005/06 form Pool B.
The two second placed teams from Round 5 played a two-legged playoff, with the winner qualifying for the World Cup as Europe 3.
Watson had announced his retirement from international rugby only three months before after a match between Australia and Pacific Islands.
Spain win 42–28 on aggregate See 2004–2006_European_Nations_Cup_First_Division Romania, Georgia, and Portugal qualified for Round 5.