World Cup - Scotland wanted to avoid Wales
The two home nations were drawn together in Group A, along with Croatia, Serbia, Belgium and Macedonia.
"I would have rather avoided Wales because obviously it brings in that home international rivalry, which we probably could have done without," said Levein.
Scotland beat Wales 3-1 at the Aviva Stadium in Dublin in the Carling Nations Cup in May.
"We have recent good experience of playing Wales, when we won against them over in Dublin recently, but also not so long ago we lost 3-0 to Wales, so it's a bit of a mixed bag," added Levein.
Wales manager Gary Speed said: "It's obviously a tough draw. It's a really tough group, but it could have been worse.
"There are no weak teams in the group. It's one of those groups where everyone can beat anyone."
Northern Ireland face Portugal, Russia, Israel, Azerbaijan and Luxembourg in Group F.
Boss Nigel Worthington said: "It looks a reasonably tough group, but it could have been worse. There is a fair bit of travelling but you have to deal with that."
The Republic of Ireland take on Germany, Sweden, Austria, the Faroe Islands and Kazakhstan in Group C.