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Paul Shaw's sixth goal of the season sent Gillingham through to the fourth round of the AXA sponsored FA Cup on a glorious afternoon for the club at Molineux.
The resurgent striker struck in the 53rd minute with a spectacular 20-yard drive that left Wolves goalkeeper Michael Oakes helpless.
Oakes had been his side's saviour with outstanding first half saves from Gillingham top scorer Marlon King.
Victory was no more than Gillingham deserved against an expensively packaged Wolves side who were always second best on manager Dave Jone's 50th match in charge.