I have a 2003 Corolla Hatch but I don't have a capsule persay in it - I have a reversible carseat. It is the Safe N Sound Meridian and is behind the passenger seat. In all honesty - whilst it fits it is a tight fit and the front passenger seat does look a bit uncomfortable but I have sat there and it doesn't feel uncomfortable - just looks it.
I really do wish I had a bigger car - and that is only with one baby - if and when we have number 2 we will definitely be getting a much bigger car.
But yep the carseat does fit in the reversed position and will also fit (much better I think) when
DD goes forward facing. I am not sure how a capsule differs from a reversible carseat though