By Luke Baker BASRA, Iraq, Oct 31 (Reuters) - Twenty-five Iraqi soldiers ambushed a British army vehicle near Basra on Wednesday, 'killed' two people, detained a third and received a round of applause for their efforts. It was the penultimate day of a two-week training course for the Iraqis, described by their British mentors as among the best they have seen in the past six months. If all goes according to plan, the company of around 80 men, red berets slightly askew, will soon join the rest of their battalion to bolster a 12,000-strong Iraqi division that is slowly taking shape in the south. "We're at a stage where I really think the Iraqi army is going to start showing its ability," said Major Ed Wilson, whose Irish Guards company leads the training at an abandoned airfield west of Basra. "These soldiers are among the best. They're committed, they're well led and they're learning every day." The vehicle ambush, with British soldiers playing the part of insurgents, was one of two scenarios for the Iraqis on a hot day when attention spans were short and the ringing of the trainees' mobile phones occasionally interrupted proceedings. The other role-play involved repelling an insurgent attack on their imaginary barracks, which went well until one of the Iraqis sat up on the roof, exposing himself to 'gunfire'. "He's dead," said one of the trainers under his breath, monitoring proceedings from afar. "The insurgents have snipers who would definitely have picked him off." Mirroring American efforts further north, British forces have been ramping up training of Iraqi soldiers and police in recent months, hoping they can hand responsibility for security over to locals and gradually withdraw. The intention is for Britain to cut its 5,000-strong force to around 2,500 during 2008, more than five years after it joined the United States in invading the country. Most of those who remain will be involved in training Iraqis. "LOST IN TRANSLATION" The training remains a slow and laborious process and British officers admit they are not going to produce a model, modern army in double quick time. Instead, it is a case of doing their best in often adverse circumstances. From patchy attendance -- even some of the best Iraqi trainees do not turn up every day due to other commitments -- to limited weaponry and logistics, keeping the training on track can be a struggle. "Getting them to work at it for more than three hours at a time can be tough," said Lieutenant Will Maunder-Taylor, a leader of the Guards training team. "Afternoons they basically won't work. It's too hot." On the range, the Iraqis' ability to hit a target over 50 yards (metres) is about 50 percent, the trainers said, whereas in the British army it is generally 100 percent. All instructions have to be delivered via interpreters -- in this case a young man in dark glasses and a t-shirt emblazoned with the word "resistance" -- who sometimes struggle with a range of thick accents: Scottish, Irish and Liverpudlian. At the same time, the strength and confidence of the Iraqi soldiers appears to be growing, particularly in comparison with a year or more ago, when desertions were not uncommon. They are paid around $500 a month, a good wage in Iraq. Major Latif Nashi, who spent 15 years in Saddam Hussein's army and is now the commander of a company in the new Iraqi army, said he felt much more confident about prospects, even if he wished his troops had more weaponry, radios and cars. "All of my men, they are ready for battle," he said. "We are prepared physically and mentally. "The militia have better weapons than us," he added ruefully.