"I try to forget our 7-1 defeat to Holland," he said. "But I do recall however hard we resisted, they kept coming at us.
"They were a fantastic team full of household names and taught us a lesson that day."
But the former Liverpool and Aston Villa striker has no fear about John Toshack's young team facing one of world football's great teams on their home turf on the eve of the Dutch departure for Euro 2008.
"This Wales team is young but it is learning fast on the most ruthless stage," said Toshack's right-hand-man Saunders.
"Obviously young players will make mistakes, especially when they're up against world-class opposition."
The Welsh defence to play the Netherlands at the famous De Kuip stadium in Rotterdam will be hugely inexperienced.
Centre-backs Danny Gabbidon and James Collins - the partnership Toshack hails as his "nerve centre" - are on an injury list that also includes teenage sensation Gareth Bale.
Ashley Williams, Craig Morgan and Chris Gunter have 14 caps between them and Sam Ricketts will be Wales' most experienced defender as the Hull full-back will make his 28th international appearance.
The Dutch maybe without Arsenal ace Robin van Persie but their frontline boasts some of the world football's most feared attackers such as Ruud van Nistelrooy and Arjen Robben.
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Wales have won three successive internationals and have kept four consecutive friendlies but Saunders admits: "Our defence is in for a real long and tough afternoon.
"But we've a young backline and defenders don't enter their prime until their late twenties and defenders only enter their prime by learning how to mark every type of striker and playing in every kind of environment.
"And marking players like Ruud van Nistelrooy in a stadium renowned for its intense atmosphere will be a huge learning curve.
"They are going to mistakes and be punished but it's how they learn from it, that's the key."
The Netherlands' Euro 2008 squad:
Edwin van der Sar (Manchester United), Maarten Stekelenburg (Ajax Amsterdam), Henk Timmer (Feyenoord), Wilfred Bouma (Aston Villa), Tim de Cler (Feyenoord), John Heitinga (Ajax Amsterdam), Joris Mathijsen (Hamburg SV), Mario Melchiot (Wigan Athletic), Andre Ooijer (Blackburn Rovers), Ibrahim Afellay (PSV Eindhoven), Giovanni van Bronckhorst (Feyenoord), Orlando Engelaar (Twente Enschede), Nigel de Jong (Hamburg SV), Wesley Sneijder (Real Madrid), Rafael van der Vaart (Hamburg SV), Demy de Zeeuw (AZ Alkmaar), Ryan Babel (Liverpool), Klaas Jan Huntelaar (Ajax Amsterdam), Dirk Kuyt (Liverpool), Ruud van Nistelrooy (Real Madrid), Robin van Persie (Arsenal), Arjen Robben (Real Madrid), Jan Vennegoor of Hesselink (Celtic).
Wales squad:
Wayne Hennessey (Wolves), Boaz Myhill (Hull City), Lewis Price (Derby County), Darcy Blake (Cardiff City), Neal Eardley (Oldham Athletic), Steve Evans (Wrexham), Chris Gunter (Tottenham Hotspur), Joe Jacobson (Bristol Rovers), Craig Morgan (Peterborough United), Lewin Nyatanga (Derby County), Sam Ricketts (Hull City), Ashley Williams (Swansea City), Jack Collison (West Ham), Andrew Crofts (Gillingham), Arron Davies (Nottingham Forest), David Edwards (Wolves), Mark Jones (Wrexham), Jason Koumas (Wigan Athletic), Joe Ledley, Aaron Ramsey (both Cardiff City), Carl Robinson (Toronto), Craig Bellamy (West Ham), Craig Davies (Oldham Athletic), Freddy Eastwood (Wolves), Ched Evans (Manchester City), Daniel Nardiello (QPR), Sam Vokes (Wolves).