Capaldi sat out for much of the first part of the 2004–05 season after breaking a leg during a game, but in December 2004 he signed a two-year extension to his contract, to run until June 2007.

Following the sale of Gunter on 1 January, he returned to the first-team squad and began to settle more comfortably into the side, including playing in all six of the club's matches on their run to the 2008 FA Cup Final.

After sitting out the first fortnight of the season, he returned to first-team action on 26 August in a 2–1 League Cup victory over Milton Keynes Dons, only for him to suffer a recurrence of the problem.

[6] Capaldi spent over three months on the sidelines with the injury and, after being named on the bench for several games, made his return as a substitute for Chris Burke during a 0–0 draw with Arsenal in the fourth round of the FA Cup on 25 January.

Capaldi returned to the side in a 3–2 loss to South Wales rivals Swansea City, playing on the left of midfield in place of the injured Peter Whittingham.

Following his release, Capaldi spent time on trial with Plymouth Argyle, Crystal Palace and Heart of Midlothian before signing a short-term deal with Morecambe on 16 September 2010, reuniting him with former Northern Ireland manager Sammy McIlroy.

[2] Capaldi broke Welshman Moses Russell's 78-year-old record for international appearances made by a Plymouth Argyle player when he was awarded his 21st cap in a friendly against Wales.