Sec Form 4 Filing - SALMON RIVER CAPITAL II LP @ CAPELLA EDUCATION CO - 2006-11-28

FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person SALMON RIVER CAPITAL II LP 2. Issuer Name and Ticker or Trading Symbol CAPELLA EDUCATION CO [ CPLA] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director X __ 10% Owner _____ Officer (give title below) _____ Other (specify below) (Last) (First) (Middle) SALMON RIVER CAPITAL LLC, 680 FIFTH AVENUE 8TH FL 3. Date of Earliest Transaction (MM/DD/YY) 11/28/2006 (Street) NEW YORK, NY10019 4. If Amendment, Date Original Filed (MM/DD/YY) 6. Individual or Joint/Group Filing (Check Applicable Line) __ X __ Form filed by One Reporting Person _____ Form filed by More than One Reporting Person (City) (State) (Zip)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned 1.Title of Security (Instr. 3) 2. Transaction Date (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 11/28/2006 P 300 A $ 25.03 52,526 D ( 1 ) Common Stock 11/28/2006 P 200 A $ 25.07 52,726 D ( 1 ) Common Stock 11/29/2006 P 110 A $ 25.29 52,836 D ( 1 ) Common Stock 11/29/2006 P 1,100 A $ 25.22 53,936 D ( 1 ) Common Stock 11/29/2006 P 100 A $ 25.26 54,036 D ( 1 ) Common Stock 11/29/2006 P 300 A $ 25.24 54,336 D ( 1 ) Common Stock 11/29/2006 P 500 A $ 25.25 54,836 D ( 1 ) Common Stock 11/29/2006 P 900 A $ 25.21 54,736 D ( 1 )

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities) 1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5) 6. Date Exercisable and Expiration Date (MM/DD/YY) 7. Title and Amount of Underlying Securities (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4) Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares

Reporting Owners Reporting Owner Name / Address Relationships Director 10% Owner Officer Other SALMON RIVER CAPITAL II LP SALMON RIVER CAPITAL LLC 680 FIFTH AVENUE 8TH FL NEW YORK, NY10019 X Signatures /s/ S. Joshua Lewis - Managing Member 11/29/2006 Signature of Reporting Person Date

Explanation of Responses:

( 1 )The amount shown represents the beneficial ownership of the Issuer's securities owned by Salmon River Capital II, L.P. The general partner of Salmon River Capital II, L.P. is Salmon River Capital GP, LLC. The sole member of Salmon River Capital GP, LLC is Mr. Lewis. Accordingly, Mr. Lewis has voting and investment powers with respect to the shares beneficially owned by Salmon River Capital II, L.P. Mr. Lewis disclaims beneficial ownership of such shares except to the extent of his pecuniary interest therein.

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).

** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).

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