Like others have already said, I think Brazil have to be favourites. England will reach the quarter finals, and semis if we're lucky.
Why is it though that nobody else has yet mentioned the African teams? First World Cup to be staged on that continent and you'd have to favour some of the players to adapt better to the conditions than some of the European sides. Now I don't expect an African side will necessarily win the tournament, but it wouldn't surprise me if (say) the Ivory Coast had a run to the semi-finals.