SPRINGFIELD, N.J. - Phil Mickelson was in the best place you could be after two rounds of the PGA Championship. Tiger Woods was in the last place you could be and still be playing.

Mickelson, trying to cap off a tough year in the majors, shot a 65 Friday to take a three-stroke lead over Jerry Kelly at 8-under 132.

Woods, who came here looking to win three majors in a year for an unprecedented second time in his career, capped a 69 with a birdie to finish on the cut line at 4 over.

Things are certainly different for two of golf's biggest names in the final major of the year.

"I don't think that the way I plan on playing the golf course is any different being ahead as it would be being behind," said Mickelson, the 2004 Masters champion who tied for 33rd in the U.S. Open and tied for 60th in the British Open, the previous two majors. "I think you have to take what the course gives you."

The 7,392-yard Lower Course at Baltusrol Golf Club gave Woods fits over the first 36 holes. He opened with a 75 and, despite three birdies in a five-hole stretch on the back nine, needed the closing birdie to avoid missing the cut in a major for the first time as a professional.

"I didn't know what the number was to be honest with you until 18," Woods said. "I was just trying to get back to even par for the tournament. That was my whole goal throughout the day, get back to even par."

Mickelson was one of six players tied for the first-round lead with 67s. He pulled away from the pack right away, shooting a 5-under 31 on his front nine, including a 20-foot putt for an eagle 3 on the 550-yard 18th. He double-bogeyed No. 1, his 10th hole, and bogeyed No. 6, but he also made three birdies on the back side.

"The thing I was most proud of about today's round was that on this course everybody is going to make mistakes, but sometimes it's hard to forget about it and let it go," Mickelson said. "After I made a double on 1, I was able to be patient and let it go and came back with birdies on 3 and 5. When I bogeyed 6, I was able to let it go and come back with a birdie on 8. I was able to let go of some bad shots and forget about it and move on."

Mickelson was in contention in all four majors last year, including the long-awaited first win in the Masters. He was second in the U.S. Open, third in the British Open and tied for sixth in the PGA.

"I have done the same thing that I have done in the previous three majors this year as I did in the four majors last year," he said of his preparation for the PGA. "I'm entering the final two rounds with a lot more confidence than I've had in a while."

Kelly, whose best finish in a major this year was a tie for 20th at the Masters, made the cut in the PGA for the first time in four years and the third time in nine appearances.

He matched Mickelson's 65 on Friday, capping the round by holing out from a bunker for birdie on the par-3 9th.

"It was a perfect lie, perfect shot, just had to execute," he said of his fifth birdie in a bogey-free round that put him in Saturday's final pairing with Mickelson. "That's exactly what I love. Just to be in that theater is going to be fun."

Davis Love III (68), Lee Westwood (68) and Rory Sabbatini (69) were at 136, while defending champion Vijay Singh (67) was in a group of five another stroke back.

Woods opened his second round with a birdie, but any thoughts of a special round were gone when he bogeyed the next three holes. He was 7 over after 10 holes, three shots above the cut for the low 70 and ties.

He birdied 11, 12 and 15 to get to the number and with two par 5 closing holes, playing on the weekend seemed a cinch, even if winning a third PGA Championship wasn't.

But Woods went for the green in two on the 650-yard 17th, getting a bad bounce to an impossible lie in a greenside bunker. With his back to the hole, he was able to get the ball into some heavy grass near the green. He flopped a shot to 15 feet but missed the par putt.

Now he needed a birdie.

His second shot from 196 yards left him an 18-footer and he two-putted for the birdie.

"I figured if I go birdie-eagle, or something like that, I'm right there at 1 over par looking pretty good," Woods said. "Then all of a sudden here I am back at 5 over par, even for the day. Now you've got to suck it up and hit two good golf shots and that's what I'm really proud of."

It was the fourth time Woods, whose record cut streak ended at 142 in May at the Byron Nelson Classic, flirted with the cut in a major.

In last year's PGA he made it by two after an opening 75. He made the cut by one stroke in the 2001 PGA, and he finished on the number at the 2003 Masters.

This year, Woods won the Masters and British Open and was second in the U.S. Open.

Kelly was asked if he could see Woods winning the tournament and his 11th major championship.

"Sure. Why not?" he said. "I mean he's probably the only one in the field who could shoot two rounds of 7 under. Hey, things would have to align, but they have aligned for him in the past."