The comments came despite disappointing international results for the NBA-powered Americans over the past eight years. After dominating the Olympic basketball competition in the 1990s, the United States finished sixth at the 2002 world championships and won bronze at the 2004 Olympics in Athens and the 2006 world championships.
"We have nothing to be complacent about. We haven't accomplished anything yet," Krzyzewski told a news conference in Macau. "We're in the midst of trying to accomplish."
Tough challenge
He said he is aware of the rising standard of the international game and predicted the Beijing Olympics basketball tournament would be the best ever because "world basketball has got to another level".
"Basketball around the world has exploded. Thirty percent of the NBA are international players. Many of the teams we face ... some will have a starting five of five NBA players," Krzyzewski said. "World basketball is terrific and it'll be a tough challenge for us."
The US will open their Olympic campaign on August 10 against a China team that includes Houston Rockets centre Yao Ming and Yi Jianlian, who was recently traded from the Milwaukee Bucks to the New Jersey Nets.
"In order for us to become the best team we can be, we have to treat each team in the same manner," Krzyzewski said.
US team managing director Jerry Colangelo said the Americans are aware that an ad hoc team of NBA stars does not cut it any more and noted the current squad was assembled in 2006.
"The core players have been together for the last three years. In the past, all-star teams were selected. That was good enough, but that's not the case anymore," Colangelo said.
Despite past performances, the players were upbeat about their prospects.
"Every time we step on to the court, we know we have the talent and we know we have the strength to go out and be the best team on the court," James said. "We have to be confident for us to go out there and play the way we want to play.
"The chemistry right now is really good," he added.
Added firepower
Asked about other contenders for the Olympic title, the Miami Heat's Dwayne Wade pointed to defending Olympic champions Argentina and reigning world champions Spain, but said, "I'm not going to say anyone else (other than the US) is a favourite to win."
The current US squad is largely the same as team that contested the 2006 world championships - but with the added firepower of Kobe Bryant and veteran, Jason Kidd.
James sat out the US team's first warm-up game against Canada at Las Vegas on Friday with a sprained right ankle, but said yesterday he is healthy and will play in upcoming exhibition games in Macau and Shanghai. He joined the team's first practice in Macau yesterday but taped his right ankle as a precaution.
"I'm going to play him a lot and make him work really hard," Krzyzewski said.
Team spokesman Craig Miller said Wade, who is recovering from left knee surgery, and the Orlando Magic's Dwight Howard, recovering from a stress fracture to his sternum, are both fit. Wade scored 20 points in the US' 120-65 rout of Canada.
In Macau, the US will play Turkey on Thursday and Lithuania on Friday before moving on to Shanghai, where they play Russia on August 3 and Australia on August 5.