Australia fell at the first hurdle for the second time in three years after Sweden avenged their 5-0 quarter-final whitewash last year to snatch a 4-1 win in Adelaide. Russia were stunned 3-2 by World Group newcomers Belarus.
The presence of Mark Philippoussis and former world number one Lleyton Hewitt failed to stop Australia from becoming the seventh defending champions to be eliminated in the opening round since the Final Round was introduced in 1972.
While the winners of the past two seasons were left to lick their wounds, 2001 champions France safely negotiated the test provided by Croatia to book a place in the quarter-finals against Switzerland.
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Thomas Enqvist then completed Australia's humiliation when he beat Wayne Arthurs 7-6, 3-6, 6-4 in the dead rubber.
Seven-times champions Sweden advanced to a showdown with the United States in April while condemning Australia, who beat Spain last November to win the Davis Cup for the 28th time, to the playoffs in September.
"We knew that we had to do something really, really good to come through so it's definitely a big upset," Bjorkman said.
"It is never easy to beat the champions from last year. You always hope to win but I never really thought that we could maybe do it."
SURPRISE REPLACEMENTS
Vladimir Voltchkov beat Russia's Mikhail Youzhny 7-5, 6-2, 6-4 in the fifth rubber to give underdogs Belarus a last eight meeting against Argentina, winners over Morocco.
Youzhny, who clinched the decisive fifth rubber in the 2002 final against France to hand Russia their first Cup win, and Voltchkov were surprise replacements for Marat Safin and Alexander Shvets respectively.
Russia captain Shamil Tarpishchev shocked everyone by taking out the in-form Safin, while his Belarus counterpart Sergei Teterin decided to bring back Voltchkov, whose participation had been in doubt after he injured his ankle in Friday's singles match against Igor Andreev.
However, against an inspired Voltchkov, Youzhny was a pale shadow of the man who came back from two sets down to win an epic five-setter against Paul-Henri Mathieu in the 2002 final.
Max Mirnyi had earlier trounced Andreev 6-3, 6-4, 6-4 to bring the home team level at 2-2 in Minsk.
Arnaud Clement secured France's passage into the last eight with a 6-2, 3-6, 7-6, 6-4 win over Croatia's Ivan Ljubicic.
Nicolas Escude wrapped up the 4-1 win when he outplayed Ivo Karlovic 7-6, 6-2 in the final dead rubber.
The 2001 champions will travel to Switzerland for their quarter-final for a repeat of last year's tie which the Swiss won 3-2 in Toulouse.
"We will be looking for revenge. It will be hard because Roger Federer is one of the best players in the world. But my team can be good and dangerous," said France captain Guy Forget.
World number one Federer secured Switzerland's place in the last eight when he beat Andrei Pavel to give his side a 3-1 lead over Romania.
TROUNCED HOPES
Another former champion, Spain, had to rely on a second-string team to reach the next round against the Netherlands.
Runners-up last year, Spain were left in a precarious situation on Saturday after they lost their doubles rubber to the Czech Republic to trail 2-1.
Teenager Rafael Nadal was handed the task of steering Spain into the next round in the absence of his country's top two players -- world number two Juan Carlos Ferrero and the seventh-ranked Carlos Moya -- through injury.
Playing the final rubber after Feliciano Lopez had drawn Spain level at 2-2 after the first reverse singles, Nadal rose to the occasion and trounced Czech hopes with a 7-6, 7-6, 6-3 victory over Radek Stepanek.
The U.S. and Argentina had wrapped up their ties on Saturday after taking unassailable 3-0 leads.
World number three Andy Roddick had spearheaded the U.S., champions 31-times, cause against Austria in Connecticut.
He had unleashed a 150 mph (241.4 kph) serve -- setting a new serving speed record -- on his way to quashing Stefan Koubek on the opening day before twins Mike and Bob Brian secured the tie by capturing Saturday's doubles.
