Rarely has the cliché "a game of two halves" been more appropriate. In the opening period of this game, Liverpool tore into the Gunners playing a brand of football which at times was truly exhilarating. I'd even go as far as to say that opening 45 minutes was as good as Liverpool have played under Houllier.
Then half time came, and the game changed. The second half saw Arsenal gradually establish a foothold in the game, until eventually they were calling the shots. It's difficult to pinpoint exactly what happened, but the injury to Vladi, and the subsequent change in formation which saw young Anthony Le Tallec marooned on the left wing didn't help.
Houllier had sprung something of a surprise before kick off by dropping Emile Heskey, bolstering the midfield with the return of Salif Diao. This meant Michael Owen was on his own up front, although the cynical might suggest that has been the case since Milan Baros left Ewood Park on a stretcher.
Owen wasn't lacking support however, as Smicer and Kewell were never far away from him in a blistering opening to the game in which some of the football was a joy to behold. We've waited a long time to see a Houllier side produce this type of football, but for the second week in succession it led to nothing.
Harry Kewell gave the reds the lead with a crisp half volley after the Arsenal defence failed to clear a Riise cross. The finish was just what you'd expect from the talented Aussie, who looks to be getting better with every game. He was outstanding at Charlton last week, and followed that up with a display which would have been enough to earn the star man award had it not been for the brilliance of El Hadji Diouf.
Having given his side the lead, Kewell then missed an even easier chance when he blazed over the bar from 12 yards. Michael Owen also should have done a lot better with two headed opportunities, and those misses were to prove costly as Arsenal drew level with an undeserved - not to mention contentious - equaliser.
Smicer was wrongly adjudged to have fouled Parlour, and from the resulting free-kick Edu headed past Dudek with the help of a deflection off Hyypia. It was harsh on the reds to say the least, but if you don't take your chances you invariably pay the penalty, especially against a side of Arsenal's undoubted quality and resolve.
To make matters worse for Liverpool, Smicer was then forced off through injury. Vladi had looked really lively, and his departure was a massive blow to the team. Anthony Le Tallec came on, but never really managed to get into the game in the way he would have liked.
It didn't help him being stuck out on the left though, and that's something which I don't really understand. Why he wasn't just handed the same role as Smicer is a question which only Houllier can answer. Even more disappointing for me though, was the crowd's treatment of the youngster.
Normally, if an 18 year old kid was thrown in at the deep end for a game of such importance at Anfield, the fans would be encouraging him and indulging him if the odd pass went astray. Yet any error from Le Tallec was met by groans from a large section of the crowd.
We've all got high hopes for the boy, but it seems that some people are expecting way too much, too soon from him. All this 'new Platini' stuff is doing Tony no favours, and the treatment he got from the fans today was what you'd expect for a seasoned international, not an 18 year old rookie making what was effectively his home debut (unless you count the cameo against Leicester).
Don't get me wrong, I'm not saying the fans were on his back by any means, but he wasn't indulged the way an 18 year old normally would be.
The second half saw the reds continue to knock the ball about well, but the longer the game went the more control the visitors managed to wrestle away from Houllier's men, until eventually they were in almost complete control for a spell.
Henry had been almost anonymous in the opening period, as had Pires, but they began to look more and more menacing as the game progressed. Henry forced Dudek into a couple of smart low saves with shots from the edge of the box, and Pires began to get the better of Finnan on a regular basis.
For the reds, Diouf was a constant threat and led Ashley Cole a merry dance all afternoon. No matter where on his body the ball arrives, or at what speed or angle, Dioufy's first touch is always exquisite and the ball is killed stone dead. Technically, Diouf is a wonderful player to watch and he also works his bollocks off.
If he becomes a bit more productive in the final third he'll be as good as anyone in this league. The thing lacking from Diouf's game is goals, and this was highlighted by the contribution of Pires for the Gunners. He'd done nothing in the first half, but picked up after the break and in the end won the game for his side with a goal of absolutely stunning quality.
It had been coming, as Liverpool had lost the stranglehold they had on the game, and were forced onto the back foot for long periods in the second half. The fluid passing and movement of the first 45 minutes was nowhere to be seen, as the side totally lost their way.
Things got worse for Houllier when Owen went down with what looked like a knee injury. The groan which reverberated around the stadium when Michael stayed down says it all really. Without Owen we are well and truly screwed, and let's hope the injury is a minor one. Serious enough to keep him out of England's trip 'to Hell', but not so serious that he misses any Liverpool games.
The sight of Owen limping off was soul destroying, seeing Heskey come on in his place merely rubbed salt in the open wound. As Owen left the game, so too did any hope we had of getting anything from it. Kewell continued to threaten fleetingly, but Arsenal were fairly comfortable.
Diao and Gerrard had bossed the game in the first half, but Edu and Gilberto improved beyond recognition after the break. Diao had a decent game, but tired late on and was replaced by John Welsh. It was great to see Welshy finally get a Premiership game, and let's hope it's the first of many.
Welsh's appearance was one of the few comforts to come out of this defeat. Four points from 12 at Anfield is worrying, as is the fact we have lost three games already. On the positive side, we're playing really good football at long last, and are as enjoyable to watch at the moment as we have been in a long time.
If we can produce the standard of football from the first half every week, we don't have anything to worry about. If we play like we did in the second, we're up shit creek without a paddle. I just wish I knew which one was the real Liverpool.
Team: Jerzy Dudek; Steve Finnan, Igor Biscan, Sami Hyypia, John Arne Riise; El Hadji Diouf, Salif Diao (John Welsh), Steven Gerrard, Harry Kewell, Vladimir Smicer (Anthony Le Tallec); Michael Owen (Emile Heskey):
