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Steve Staunton's men will also face trips to Slovakia, Cyprus, San Marino and neighbours Wales.
Staunton will be relieved to have avoided many of the bigger guns in the draw, and considering that they were seeded fourth, the new Ireland boss should be pleased with the outcome.
England were placed in one of the weakest groups that emerged from the draw in Switzerland. The quarter-finalists at the last tournament will face Croatia, Russia, Israel, Estonia, Macedonia and Andorra.
Scotland have been handed a tough challenge and must overcome France and Italy in Group B to even claim second place.
The Scots have also been placed in the same pool as Ukraine, Lithuania, Georgia and old foes, the Faroe Islands.
Meanwhile, Northern Ireland were drawn in Group F with Liechtenstein, Iceland, Latvia, Denmark, Spain and Sweden.
Euro 2008 qualifying draw:
Group A: Portugal, Poland, Serbia & Montenegro, Belgium, Finland, Armenia, Azerbaijan, Kazakhstan
Group B: France, Italy, Ukraine, Scotland, Lithuania, Georgia, Faroe Islands
Group C: Greece, Turkey, Norway, Bosnia-Herz, Hungary, Moldova, Malta
Group D: Czech Republic, Germany, Slovakia, Ireland, Wales, Cyprus, San Marino
Group E: England, Croatia, Russia, Israel, Estonia, Macedonia, Andorra
Group F: Sweden, Spain, Denmark, Latvia, Iceland, Northern Ireland, Liechtenstein
Group G: Netherlands, Romania, Bulgaria, Slovenia, Albania, Belarus, Luxembourg