The Swans 14.11 (95) defeated the Demons 10.3 (63) to also record their fifth win in a row at the MCG, while Sydney also ended Melbourne's nine-match winning streak at the 'G. It was the first time the Dees had lost at their home ground in 2006.
Sydney has now replaced Melbourne in third position - the highest it's been in 2006. In turn, the Demons are now fourth on the ladder, but could drop out of the top four by the completion of round 19 on Sunday.
Melbourne has now lost three of its past four matches, while it has copped some untimely injuries with Travis Johnstone, Russell Robertson, Aaron Davey, Byron Pickett, Matthew Whelan, Brent Moloney, Colin Sylvia and Paul Johnson all missing against the Swans.
To add further insult to injury, Ryan Ferguson injured his posterior cruciate ligament in the final stages of the match, while skipper David Neitz was reported for charging Sydney's Adam Goodes. The incident occurred at the seven-minute mark of the third term, when Neitz's knee crunched Goodes in the back.
In an otherwise outstanding day for the Swans, the only concern was when midfielder Nic Fosdike hit his head on the MCG turf, after he was bumped by Demon Shannon Motlop as he kicked in the final term. He left the ground in the hands of the trainers.
Paul Bevan also had his number taken for an incident involving Melbourne's Chris Johnson during the second quarter.
Brownlow Medallist Adam Goodes was super. His first half - and his second term in particular when he notched up 10 touches - was dominant. He was clearly best on ground and another 'Charlie' is certainly within reach in 2006.
Skipper Brett Kirk was also a general in the midfield, winning 25 touches, while Darren Jolly was outstanding in the ruck with 37 hit-outs. It was a terrific performance from the former Demon.
Up forward, Barry Hall booted three goals, while Jarrad McVeigh, Michael O'Loughlin and Heath Grundy chipped in with a couple each.
Ryan O'Keefe was also a fine player in Sydney's attacking zone.
Melbourne captain David Neitz worked tirelessly in front of goal, finishing with four goals. Youngster Matthew Bate was again one of his side's best for the second week in succession but Cameron Bruce (23 disposals) was the only Demon to win more than 20 touches.
Melbourne started the match in a positive fashion, claiming the first two goals via Neitz and Daniel Ward to gain a 12-point advantage. But the Swans soon hit back with a couple of their own and it was the start of a goal-for-goal fest.
From the 12-minute mark of the opening quarter until Hall jagged his second at the nine-minute stage in term two, an arm wrestle developed and nine lead changes occurred.
Yet Hall's second also broke that goal-for-goal trend and when Goodes and Fosdike followed up - Fosdike's hit from the boundary was a beauty - the Swans were out to a handy 14-point lead.
But a late Nathan Jones goal brought the deficit back to nine points at the long break.
The Swans kicked the first three goals of the second half and jumped out to a 28-point lead and the signs were ominous for the Demons. But when Neitz hit back with two in a row late in the term, the Demons reeled the margin back to 16 points to remain in touch heading into the final quarter.
Yet when McVeigh kicked the only two goals before red-time, the Swans were home and hosed.
After a physical match, Sydney coach Paul Roos said that his players had expected the Demons to be tough in the clinches and he was pleased with not only the outcome, but also the endeavour.
"We knew going in that Melbourne had prided themselves on their tackling all year," Roos said. "We knew it was going to be a physical game."
"They put some real heat on us early, it was a credit to our guys that we were able to withstand that, and put the pressure on them in the second half and come away with the win."
Roos is confident that this sort of match is an ideal preparation for what looms as another important clash at Skilled Stadium next week.
"You know that Geelong next week are going to be physical, they are still fighting to make the finals, so it's not gonna get any softer in terms of the opposition and how they're gonna come at you," he added.
Melbourne coach Neale Daniher said his side had a 'crack' despite going down by just over five goals.
"We tackled hard, but we didn't have enough run and dash in our team to put enough pressure on in the sense of an offensive pressure," Daniher said.
"We only went inside 50 30 times and it's never near enough to win a game of footy and that run and dash that we rely on - against a very good team like Sydney - we probably at the end of the day had too many sitting on the wrong side of the fence (due to injury)."
"All credit to Sydney, they played very, very well."
MELBOURNE: 4.0, 7.1, 9.2, 10.3 (63)
SYDNEY: 4.2, 8.4, 11.6, 14.11 (95)
GOALS: MELBOURNE: Neitz 4, Bruce, Godfrey, Bate, Jones, Ward, Brown SYDNEY: Hall 3, McVeigh 2, Grundy 2, Goodes 2, O'Loughlin 2, Ablett, Kirk, Fosdike
BEST: MELBOURNE: Bruce, Neitz, Ward, Bate, McDonald SYDNEY: Goodes, Kirk, McVeigh, Schneider, Hall, C.Bolton, Jolly
INJURIES: MELBOURNE: Ward (ankle), Ferguson (knee) SYDNEY: Fosdike (concussion)
CHANGES: MELBOURNE: Nil SYDNEY: Nil
REPORTS: Bevan (Sydney) by umpire James for rough conduct against Johnson (Melbourne) in the second quarter, Neitz (Melbourne) by umpire Goldspink for charging Goodes (Sydney) in the third quarter
UMPIRES: James, Meredith, Goldspink
CROWD: 43,794 at the MCG
