England endured a miserable start to the Adelaide Sevens as they lost to Fiji and Kenya.
Setefano Cakau's double and William Ryder's 11 points saw England lose 31-12 in their first match, against last year's Adelaide winners who also beat France in style.
England then slipped to their fourth defeat by Kenya in five matches, losing 17-10 despite a late rally, as the Africans also triumphed 19-12 against France.
England's third and final Pool D match is against France later today.
Scotland came from 17-0 down at half-time to beat the Cook Islands 22-17 in style thanks to a telling contribution by Jim Thompson in the second half as he scored one and set up another in a sublime climax.
Thompson and his team-mates, however, were undone by a strong Argentina side 19-17 in their next match.
Elsewhere in Scotland's Pool A Series leaders New Zealand, winner of all five tournaments so far, were made to sweat as they attempt to clinch their eighth series title in nine years.
The Kiwis edged past Argentina 21-14 to make it 43 matches unbeaten and then came from behind to beat the Cook Islands 33-7, with Scotland next up in their last group game.
Wales lost 28-17 to Samoa in their first game before the Pacific nation won 31-26 in a great game against Japan, who earlier lost 53-0 against Tonga.
Wales then lost 19-17 to Tonga.
Hosts Australia needed a James Lew try to beat Canada 21-14 while South Africa, New Zealand's closest challengers, beat the United States 43-0.
Australia then beat the Americans 31-19.
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