"They are not the number one side in the world; they are not the number two.
"What can we realistically expect from England in this World Cup? Well, if they got to the semi-finals and played well then I think the majority of people would be happy.
"I don't think Martin Johnson would be happy. I don't think the coaches would be, I don't think the players would be happy but the majority of people would say that is not a bad reflection of where you are at the moment.
"Will this team be better after the World Cup? The answer is yes, undoubtedly.
"For many of them it will be there first experience of a World Cup and I know from my own experience in '99, we didn't win that World Cup because we were not ready to win it at that moment in time."
Dallaglio said his side's experience in 1999 helped set the platform for success.
"It would have been nice to win it (in 1999), but we weren't ready to win it and we learned huge lessons from it," he said.
"By the time we got to 2003, we were absolutely ready to win that World Cup.
"I hope this England team enjoy the World Cup, have a great experience. For some of them it will be their last but for the majority of them it will be their first.
"I think that this England team's time will come four years later.
"Without a doubt this team is capable of winning in 2015. That is no consolation if they don't go and win this one because of course you don't know what is going to happen in the future. But this England team are getting better and better all the time."
Dallaglio was speaking at the launch of his new book World Cup Rugby Tales, where he revisits previous tournaments with the help of fellow rugby glitterati.
The former Wasps flanker describes Johnson in the book as being "bright, cheery and frivolous as eve" as the 2003 World Cup came to a head, while others - including head coach Sir Clive Woodward - started to feel the pressure.
Dallaglio does not believe Johnson's personality has changed dramatically since then and thinks he is in the right frame of mind heading into the World Cup.
- AAP