If anyone is interested, I completed my BS in Information Technologies there in 2005 and will be completing my MBA there this month. First the short info: they are fully accredited and have a few that some of the smaller B&M schools have yet to achieve, it isn't easy don't fool yourself, DO NOT fall behind in a masters course - you'll never catch up.
Most of the true negative reviews here mention the financial aid office and I'd have to agree with them on that. However I never used financial aid at any of the other B&M schools I've attended so I have no point of comparison, I just find them tough to deal with. Cost - it is friggin' expensive, but so are B&M schools. One of the things I like about Capella though is the other students. I'm taking courses with heads of major companies and top ranking officers in the military. You just wont get that at your local college. Back in 03' when I started this path I looked at every option I had including all the local universities and the major online ones. The locals were a joke (to me) because they refused to look at most of my past education or work experience. Capella was at least reasonable here, they didnt take all of it but enough to make it practical.
By comparison I tried to initially enrole in UoP (bigger school, better reputation at the time, etc.) and submitted all my transcripts. They did an initial eval and said they would accept all my old courses. Then about 1 week into my first course I get call saying they would accept none of them because they were all "continueing education". To make a long story short the admin office had no real idea what continueing ed was and just denied it out of hand. After some heated conversation they agreed to accept a few but I was done at this point and their credability was shot. Knowing a basic academic term shouldnt have been a problem for them.
So anyway I am completing my education here at Capella. I cant see a lot of value in getting a Phd so this is probably it for me. How have my degrees been viewed by employers ? For the most part I never get a comment on them, and the ones that do either went there or UoP and want to know what I thought of it. I did get one idiot tell me that it was a "corrrespondance school", and another say something another unknowledgable reviewer said about having no face-to-face contact was a problem for him (HR guy go figure). I wouldnt want to work there anyway. For the most part companies are global and work in a virtual team enviroment so you'd better get comfortable with it, or work at Walmart. If your attending or have graduated from a place that interacts and conducts courses virtually you should be able to sell that to a hiring manager big time. In the end you need to make up your own mind, but if had it to do again I would do it at Capella, but I would have started sooner and took less time off between my BS and MBA.