UNITED
      STATES


SECURITIES
      AND EXCHANGE COMMISSION


WASHINGTON,
      D.C. 20549








FORM
      10-QSB





(Mark
      One)


[
                X
                ]
            QUARTERLY
                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                ACT OF
                1934





For
      The
      Quarterly Period Ended August 31, 2007





[    
                ]
            TRANSITION
                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                ACT OF
                1934





For
      The
      Transition Period from __________ To _________





Commission
      file number:  0-9879





CAPITAL
      SOLUTIONS I, INC.





(Exact
      name of small business issuer as specified in its charter)




**DELAWARE**
            
            **13-2648442**(State
                or other jurisdiction
              of
                incorporation or organization)
            
            (IRS
                Employer Identification No.)





One
      N.E.
      First Avenue, Suite 306, Ocala, Florida 34470





(Address
      of principal executive offices)





(718)
      554-3652


(Issuer’s
      telephone number)





(Former
      Name, former address and former fiscal year, if changed since last
      report)





Check
      whether the issuer (1) has filed all reports required by Section 13 or 15(d)
      of
      the Securities Exchange Act of 1934 during the past 12 months (or for such
      shorter period that the Registrant was required to file such reports) and (2)
      has been subject to such filing  requirements for the past 90 days:
      Yes [ X ] No [__]





Indicate
      by check mark whether the issuer is a shell company (as defined in rule 12b-2
      of
      the Exchange Act) Yes [ X ] No [__]





APPLICABLE
      ONLY TO ISSUERS INVOLVED IN BANKRUPTCY


PROCEEDINGS
      DURING THE PRECEDING FIVE YEARS





Check
      whether the registrant filed all documents and reports required by Section
      12,
      13, or 15(d) of the Exchange Act after the distribution of securities under
      a
      plan confirmed by a court Yes [__] No  [__]





APPLICABLE
      ONLY TO CORPORATE ISSUERS





State
      the
      number shares outstanding of each of the issuer’s classes of common equity, as
      of the latest practicable date:





As
      of
      October 22, 2007, there were 66,732 shares of the Registrant's Common Stock,
      $0.0000001 par value per share, outstanding.





Transitional
      Small Business Disclosure Format   Yes [__] No [ X ]





CAPITAL
      SOLUTIONS I, INC.


FOR
      THE
      QUARTERLY PERIOD ENDED AUGUST 31, 2007





TABLE
      OF
      CONTENTS







**PART
                I - FINANCIAL INFORMATION**Item
              1. Financial Statements
            3Item
              2. Management's Discussion and Analysis or Plan of Operation
            16Item
              3. Controls and Procedures
            22**PART
                II - OTHER INFORMATION**Item
              1. Legal Proceedings
            23Item
              2. Unregistered Sales of Equity Securities and Use of Proceeds
            23Item
              3. Defaults upon Senior Securities
            23Item
              4. Submission of Matters to a Vote of Securities Holders
            23Item
              5. Other Information
            23Item
              6. Exhibits
            23








THIS
      REPORT CONTAINS FORWARD-LOOKING STATEMENTS THAT INVOLVE   RISKS
      AND UNCERTAINTIES. SUCH STATEMENTS ARE BASED ON CURRENT EXPECTATIONS,
      ASSUMPTIONS, ESTIMATES AND PROJECTIONS ABOUT THE COMPANY AND ITS INDUSTRY.
      FORWARD-LOOKING STATEMENTS ARE SUBJECT TO KNOWN AND UNKNOWN RISKS, UNCERTAINTIES
      AND OTHER FACTORS THAT MAY CAUSE ACTUAL RESULTS, LEVELS OF ACTIVITY,
      PERFORMANCE, ACHIEVEMENTS AND PROSPECTS TO BE MATERIALLY DIFFERENT FROM
      THOSE  EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THE
      COMPANY UNDERTAKES NO OBLIGATION TO UPDATE PUBLICLY ANY FORWARD-LOOKING
      STATEMENTS FOR ANY REASON EVEN IF NEW INFORMATION BECOMES AVAILABLE OR OTHER
      EVENTS OCCUR IN THE FUTURE.





**2**


PART
      I


FINANCIAL
      INFORMATION





**Item
                1.**
            **Financial
                Statements**











**CAPITAL
        SOLUTIONS I, INC.**
 **FINANCIAL
        STATEMENTS**
 **FOR
        THE THREE MONTHS ENDED****AUGUST 31, 2007 AND
        2006**









































**3**
 
  **INDEX
          TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**
 
 
 
 **CONDENSED
          CONSOLIDATED FINANCIAL STATEMENTS:**
 
 
 **PAGE(S)**Balance
                  Sheet as of August 31, 2007 (Unaudited)
                5Statements
                    of Operations for the three months ended
                  August
                    31, 2007 and 2006 (Unaudited)
                6Statements
                    of Cash Flows for the three months ended
                  August
                    31, 2007 and 2006 (Unaudited)
                7Notes
                  to Financial Statements (Unaudited)
                8
 **4**


**CAPITAL
                  SOLUTIONS I, INC.****CONDENSED
                  CONSOLIDATED BALANCE SHEET (UNAUDITED)****AUGUST
                  31, 2007****ASSETS****2007****CURRENT
                  ASSETS**Cash
                  and cash equivalents
              
              $
              271**Total
                  current assets**
              
              
              271**TOTAL
                  ASSETS**
              
              $
              271**LIABILITIES
                  AND STOCKHOLDERS' DEFICIT****CURRENT
                  LIABILITIES**Accounts
                  payable and accrued expenses
              
              $
              11,873Short-term
                  notes payable and advances
              
              
              20,000**Total
                  current liabilities**
              
              
              31,873**STOCKHOLDERS'
                  DEFICIT**Preferred
                  stock, $.0000001 par value, 20,000,000 sharesauthorized,
                  50,000 issued and outstanding at August 31, 2007Common
                  stock, $.0000001 par value, 900,000,000 sharesauthorized,
                  66,732 issued and outstanding at August 31, 2007Additional
                  paid-in capital
              
              
              531,530Accumulated
                  deficit
              
              
              (563,132
              )**Total
                  stockholders' deficit**
              
              
              (31,602
              )**TOTAL
                  LIABILITIES AND STOCKHOLDERS' DEFICIT**
              
              $
              271




The
            accompanying notes are an integral part of these condensed consolidated
            financial statements.
 **5**




**CAPITAL
                  SOLUTIONS I, INC.****CONDENSED
                  CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)****FOR
                  THE THREE MONTHS ENDED AUGUST 31, 2007 AND 2006****2007**
              
              
              **2006****REVENUES**
              
              $
              -
              
              
              $
              -**COST
                  OF REVENUES**
              
              
              -
              
              
              
              -**GROSS
                  PROFIT**
              
              
              -
              
              
              
              -**OPERATING
                  EXPENSES**Professional
                  fees and consulting
              
              
              -
              
              
              
              -Accounting
                  and audit fees
              
              
              2,500
              
              
              
              -Stock
                  transfer fees
              
              
              -
              
              
              
              -Administrative
                  and other
              
              
              36
              
              
              
              36**Total
                  operating expenses**
              
              
              2,536
              
              
              
              36**LOSS
                  BEFORE OTHER EXPENSE**
              
              
              (2,536
              )
              
              
              (36
              )**OTHER INCOME**Debt
                  forgiveness
              
              
              -
              
              
              
              629,707**Total
                  other income**
              
              
              -
              
              
              
              629,707****
              ****
              ****
              ****
              ****
              ****
              ****
              ******INCOME
                    (LOSS) BEFORE PROVISION FOR INCOME TAXES**
              
              
              (2,536
              )
              
              
              629,671Provision
                  for income taxes
              
              
              -
              
              
              
              -**NET
                    INCOME (LOSS) APPLICABLE TO COMMON SHARES**
              
              $
              (2,536
              )
              
              $
              629,671**INCOME
                    (LOSS) PER BASIC AND DILUTED SHARES**From
                  continuing operations
              
              $
              (0.03
              )
              
              $
              6.51**WEIGHTED
                  AVERAGE NUMBER OF COMMON****SHARES
                  OUTSTANDING**
              
              
              76,732
              
              
              
              96,732




The
            accompanying notes are an integral part of these condensed consolidated
            financial statements.
 **6**




**CAPITAL
                  SOLUTIONS I, INC.****CONDENSED
                  CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)****FOR
                  THE THREE MONTHS ENDED AUGUST 31, 2007 AND 2006****2007**
              
              
              **2006****CASH
                  FLOWS FROM OPERATING ACTIVITIES**Net
                  income (loss)
              
              $
              (2,536
              )
              
              $
              629,671**Adjustments
                  to reconcile net loss to net cash****(used
                  in) operating activities:**Forgiveness
                  of debt
              
              
              -
              
              
              
              (629,707
              )**Changes
                  in assets and liabilities**Increase
                  in accounts payable and accrued expenses
              
              
              2,500
              
              
              
              -**Total
                  adjustments**
              
              
              2,500
              
              
              
              (629,707
              )**Net
                  cash (used in) operating activities**
              
              
              (36
              )
              
              
              (36
              )**NET
                  (DECREASE) IN CASH AND CASH EQUIVALENTS**
              
              
              (36
              )
              
              
              (36
              )**CASH
                  AND CASH EQUIVALENTS - BEGINNING OF PERIOD**
              
              
              307
              
              
              
              432**CASH
                  AND CASH EQUIVALENTS - END OF PERIOD**
              
              $
              271
              
              
              $
              396












The
              accompanying notes are an integral part of these condensed consolidated
              financial statements.
 **7**
 **CAPITAL
              SOLUTIONS I, INC.**
 **NOTES
              TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**
 **(UNAUDITED)**
 **AUGUST
              31, 2007 AND 2006**
  **NOTE
                          1 -**
                      **ORGANIZATION**
 
 The
            condensed consolidated unaudited interim financial statements included
            herein
            have been prepared by Capital Solutions I, Inc. (formerly Vacation Ownership
            Marketing, Inc.) (the “Company”) without audit, pursuant to the rules and
            regulations of the Securities and Exchange Commission (the “SEC”). Certain
            information and footnote disclosures normally included in the condensed
            consolidated financial statements prepared in accordance with accounting
            principles generally accepted in the United States of America have been
            condensed or omitted as allowed by such rules and regulations, and the
            Company
            believes that the disclosures are adequate to make the information presented
            not
            misleading. It is suggested that these condensed consolidated financial
            statements be read in conjunction with the May 31, 2007 audited consolidated
            financial statements and the accompanying notes thereto. While management
            believes the procedures followed in preparing these condensed consolidated
            financial statements are reasonable, the accuracy of the amounts are
            in some
            respects dependent upon the facts that will exist, and the procedures
            that will
            be accomplished by the Company later in the year.
 
 The
            management of the Company believes that the accompanying unaudited condensed
            consolidated financial statements contain all adjustments including normal
            recurring adjustments necessary to present fairly the operations, changes
            in
            stockholders’ (deficit), and cash flows for the period presented.
 
 Capital
            Solutions I, Inc., “CSI” (the “Company”) was incorporated in Delaware as Magnum
            Communications Corp in 1969. It changed names to its present name on
            May 10,
            2004.  Before changing its name to Capital Solutions I, Inc. they
            changed to Vacation Ownership Marketing, Inc.  Coinciding with the
            name change, the Company did not change its business structure, which
            was the
            development and marketing of time-shared condominiums, which it continued
            until
            1983.  During the year 1983, the Company experienced financial
            difficulties and encountered adverse litigation.  The Company’s
            charter expired until May 7, 2000, when a certificate of renewal was
            issued.
 
 On
            January 21, 2004, the Company took the following actions in lieu of an
            annual
            meeting of the stockholders pursuant to Section 228 of the Delaware General
            Corporation Law: re-election of directors; the Company increased its
            authorized
            common stock from 50,000,000 to 1,000,000,000 shares; the ratification
            of the
            issuance of common stock; the ratification of the assignment of Encore
            Builders
            common stock; and the approval of the Amended and Restated Articles of
            Incorporation. An Amended and Restated Certificate of Incorporation was
            filed
            with the Secretary of State on January 22, 2004.
 
 As
            of May
            10, 2004, the Company merged with Vacation Ownership Marketing, Inc.
            A 1:50
            reverse stock split of the Company’s common stock became
            effective.  As a result of the reverse stock split, Vacation Ownership
            Marketing, Inc. changed its name to Capital Solutions I, Inc. (“the
            Company”).  The stock split decreased the issued and outstanding
            common stock from 61,110,595 to 1,222,005. Capital Solutions I, Inc.
            had no
            assets or liabilities.  After the consummation of the merger, Capital
            Solutions I, Inc. will cease to exist.  Additionally, the authorized
            shares of common stock increased from 1 billion to 20 billion and the
            authorized
            shares of preferred stock increased from 10 million to 200 million. The
            par
            value of the common
 
 **8**
 **CAPITAL
                  SOLUTIONS I, INC.**
 **NOTES
                  TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**
 **(UNAUDITED)**
 **AUGUST
                  31, 2007 AND 2006**
   **NOTE
                      1 -**
                  **ORGANIZATION
                      (CONTINUED)**
 
 stock
            and
            preferred stock authorized was reduced from $.001 par value per share
            to
            $.0000001 par value per share. The Company does not believe the merger
            will have
            any effect on the Company or its finances other than the amendment and
            restatement of the Company’s Certificate of Incorporation.
 
 On
            May
            26, 2005, Capital Solutions I, Inc., (“The Company”) consummated a Share
            Exchange Agreement with Bedrock Holdings Corporation, Inc., a privately
            held
            Company whereby, Capital Solutions I, Inc., agreed to acquire all the
            outstanding capital stock of Bedrock Holdings Corporation, Inc. The acquisition
            was accounted for under the purchase method of accounting. Accordingly,
            Bedrock
            Holdings Corporation, Inc. was treated as a wholly owned subsidiary of
            Capital
            Solutions I, Inc.  During the quarter ended November 30, 2005, the
            Company disposed of this wholly-owned subsidiary and recorded a loss
            of
            $21,000.
 
 On
            June
            17, 2005 the Company took the following actions in lieu of an annual
            meeting of
            the stockholders pursuant to Section 228 of the Delaware General Corporation
            Law:  the Company decreased its authorized common stock from
            20,000,000,000 to 900,000,000 shares; decreased its authorized preferred
            stock
            from 200,000,000 to 20,000,000; engaged in a 1:10 reverse stock split
            of its
            common stock, decreasing the Company’s issued outstanding common stock from
            783,667,072 to 78,366,672; and the approval of the Amended and Restated
            Articles
            of Incorporation.  An amended and Restated Certificate of
            Incorporation was filed with the Delaware Secretary of State on June
            17,
            2005.
 
 
 On
            October 19, 2005, the Company took the following actions based on the
            Rescission
            Agreement to cancel 30,000,000 shares of common stock, which had been
            issued to
            the Bedrock Shareholders, and certain other individuals have been cancelled
            and
            returned to the treasury.
 
 On
            January 31, 2006 the Company took the following actions in lieu of an
            annual
            meeting of the stockholders pursuant to Section 228 of the Delaware General
            Corporation Law: the Company engaged in a 1:500 reverse stock split of
            its
            common stock, decreasing the Company’s issued outstanding common stock from
            48,366,672 to 96,732; and the approval of the Amended and Restated Articles
            of
            Incorporation.  An amended and Restated Certificate of Incorporation
            was filed with the Delaware Secretary of State on January 31, 2006.
 
 **NOTE
                      2 -**
                  **SUMMARY
                      OF SIGNIFICANT ACCOUNTING
                      POLICIES**
 
 **Use
            of
            Estimates**
 
 The
            preparation of the financial statements in conformity with accounting
            principles
            generally accepted in the United States of America requires management
            to make
            estimates and assumptions that affect the reported amounts of assets
            and
            liabilities and disclosure of contingent assets and liabilities at the
            date of
            the financial statements and the reported amounts of revenues and expenses
            during the reporting period.  Actual results could differ from those
            estimates.
 
 **9**
 **CAPITAL
                  SOLUTIONS I, INC.**
 **NOTES
                  TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**
 **(UNAUDITED)**
 **AUGUST
                  31, 2007 AND 2006**
  **NOTE
                      2 -**
                  **SUMMARY
                      OF SIGNIFICANT ACCOUNTING POLICIES
                      (CONTINUED)**
 
 **Cash
            and Cash Equivalents**
 
 The
            Company considers all highly liquid debt instruments and other
            short-
 term
            investments with an initial maturity of three months or less to be cash
            or cash
            equivalents.
 
 The
            Company maintains cash and cash equivalent balances at several financial
            institutions, which are insured by the Federal Deposit Insurance Corporation
            up
            to $100,000.
 
 **Start-Up
            Costs**
 
 The
            Company adopted Statement of Position No. 98-5 (“SOP 98-5”), “Reporting the
            Costs of Start-Up Activities.”  SOP 98-5 requires that all
            non-governmental entities expense the cost of start-up activities, including
            organizational costs as those costs are incurred.
 
 **Revenue
            and Cost Recognition**
 
 The
            Company records its transactions under the accrual method of accounting
            whereby
            income is recognized when the services are rendered and collectibility
            is
            reasonably assured.
 
 **Income
            Taxes**
 
 Income
            taxes are computed on the pretax loss based on the current tax
            law.  Deferred income taxes are recognized for the tax consequences in
            future years of differences between the tax basis of assets and liabilities
            and
            their financial basis reporting amounts at each year-end based on enacted
            tax
            laws and statutory tax rates.  All deferred tax assets that arose from
            the carryforward of net operating losses have been offset by a valuation
            allowance due to the uncertainty of the realization of these tax
            assets.
 
 **Fair
            Value of Financial Instruments**
 
 The
            carrying amounts reported in the balance sheet for cash and cash equivalents
            and
            accounts payable approximate their fair value because of the immediate
            or
            short-term maturity of these financial instruments.
 
 **Earnings
            (Loss) Per Share of Common Stock**
 
 Historical
            net income (loss) per common share is computed using the weighted average
            number
            of common shares outstanding.  Diluted earnings per share (EPS)
            include additional dilution from common stock equivalents, such as stock
            issuable pursuant to the exercise of stock options and warrants. Common
            stock
            equivalents are not included in the computation of diluted earnings per
            share
            when the Company reports a loss because to do so would be antidilutive
            for
            periods presented.
 
 **10**
 **CAPITAL
                  SOLUTIONS I, INC.**
 **NOTES
                  TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**
 **(UNAUDITED)**
 **AUGUST
                  31, 2007 AND 2006**
  **NOTE
                      2-**
                  **SUMMARY
                      OF SIGNIFICANT ACCOUNTING POLICIES
                      (CONTINUED)**
 
 **Earnings
            (Loss) Per Share of Common Stock (Continued)**
 
 There
            are
            no options and warrants outstanding to purchase stock at August 31, 2007
            or
            2006.
 
 **August
                        31,**
                    
                    
                    **August
                        31,****2007**
                    
                    
                    **2006**Net
                        Income (Loss)
                    
                    $
                    (2,536
                    )
                    
                    $
                    629,671Weighted-average
                        common sharesOutstanding
                        (Basic)
                    
                    
                    76,732
                    
                    
                    
                    96,732Weighted-average
                        common stockEquivalentsStock
                        options
                    
                    
                    -
                    
                    
                    
                    -Warrants
                    
                    
                    -
                    
                    
                    
                    -Weighted-average
                        common sharesOutstanding
                        (Diluted)
                    
                    
                    76,732
                    
                    
                    
                    96,732
  **Recent
            Accounting Pronouncements**
 
 In
            February 2006, the FASB issued SFAS No. 155, “Accounting for Certain
            Hybrid Financial Instruments, an amendment of FASB Statements No. 133 and
            140.” SFAS No. 155 resolves issues addressed in SFAS No. 133
            Implementation Issue No. D1, “Application of Statement 133 to Beneficial
            Interests in Securitized Financial Assets,” and permits fair value remeasurement
            for any hybrid financial instrument that contains an embedded derivative
            that
            otherwise would require bifurcation, clarifies which interest-only strips
            and
            principal-only strips are not subject to the requirements of SFAS No. 133,
            establishes a requirement to evaluate interests in securitized financial
            assets
            to identify interests that are freestanding derivatives or that are hybrid
            financial instruments that contain an embedded derivative requiring bifurcation,
            clarifies that concentrations of credit risk in the form of subordination
            are
            not embedded derivatives and amends SFAS No. 140 to eliminate the
            prohibition on a qualifying special-purpose entity from holding a derivative
            financial instrument that pertains to a beneficial interest other than
            another
            derivative financial instrument. SFAS No. 155 is effective for all
            financial instruments acquired or issued after the beginning of the first
            fiscal
            year that begins after September 15, 2006. The implementation of this
            pronouncement had no impact on the Company’s financial position or results of
            operations.
 **11**
 **CAPITAL
                    SOLUTIONS I, INC.**
 **NOTES
                    TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**
 **(UNAUDITED)**
 **AUGUST
                    31, 2007 AND 2006**
  
 **NOTE
                        2-**
                    **SUMMARY
                        OF SIGNIFICANT ACCOUNTING POLICIES
                        (CONTINUED)**
 **Recent
            Accounting Pronouncements (Continued)**
 
 In
            March 2006, the FASB issued SFAS No. 156, “Accounting for Servicing of
            Financial Assets, an amendment of FASB Statement No. 140.” SFAS
            No. 156 requires an entity to recognize a servicing asset or liability each
            time it undertakes an obligation to service a financial asset by entering
            into a
            servicing contract under a transfer of the servicer’s financial assets that
            meets the requirements for sale accounting, a transfer of the servicer’s
            financial assets to a qualified special-purpose entity in a guaranteed
            mortgage
            securitization in which the transferor retains all of
 the
            resulting securities and classifies them as either available-for-sale
            or trading
            securities in accordance with SFAS No. 115, “Accounting for Certain
            Investments in Debt and Equity Securities” and an acquisition or assumption of
            an obligation to service a financial asset that does not relate to financial
            assets of the servicer or its consolidated affiliates. Additionally,
            SFAS
            No. 156 requires all separately recognized servicing assets and servicing
            liabilities to be initially measured at fair value, permits an entity
            to choose
            either the use of an amortization or fair value method for subsequent
            measurements, permits at initial adoption a one-time reclassification
            of
            available-for-sale securities to trading securities by entities with
            recognized
            servicing rights and requires separate presentation of servicing assets
            and
            liabilities subsequently measured at fair value and additional disclosures
            for
            all separately recognized servicing assets and liabilities. SFAS No. 156 is
            effective for transactions entered into after the beginning of the first
            fiscal
            year that begins after September 15, 2006. The implementation of this
            pronouncement had no impact on the Company’s financial position or results of
            operations.
 
 In
            September 2006, the FASB issued SFAS No. 157 “Fair Value
            Measurements,” which provides a definition of fair value, establishes a
            framework for measuring fair value and requires expanded disclosures
            about fair
            value measurements. SFAS No. 157 is effective for financial statements
            issued for fiscal years beginning after November 15, 2007 and interim
            periods within those fiscal years. The provisions of SFAS No. 157
            should be applied prospectively. Management is assessing the potential
            impact on
            Company’s financial condition and results of operations.
  **12**
 **CAPITAL
                    SOLUTIONS I, INC.**
 **NOTES
                    TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**
 **(UNAUDITED)**
 **AUGUST
                    31, 2007 AND 2006**
  
 **NOTE
                        2-**
                    **SUMMARY
                        OF SIGNIFICANT ACCOUNTING POLICIES
                        (CONTINUED)**
 **Recent
            Accounting Pronouncements (Continued)**
 
 In
            September 2006, the FASB issued SFAS No. 158 “Employers’ Accounting
            for Defined Benefit Pension and Other Postretirement Plans”, which amends
            SFAS No. 87 “Employers’ Accounting for Pensions”
(SFAS No. 87), SFAS No. 88 “Employers’ Accounting for
            Settlements and Curtailments of Defined Benefit Pension Plans and for
            Termination Benefits” (SFAS No. 88), SFAS No. 106
“Employers’ Accounting for Postretirement Benefits Other Than Pensions”
(SFAS No. 106), and SFAS No. 132R “Employers’ Disclosures
            about Pensions and Other Postretirement Benefits (revised 2003)”
(SFAS No. 132R). This Statement requires companies to recognize an
            asset or liability for the overfunded or underfunded status of their
            benefit
            plans in their financial statements. SFAS No. 158 also requires the
            measurement date for plan assets and liabilities to coincide with the
            sponsor’s
            year end. The standard provides two transition alternatives related to
            the
            change in measurement date provisions. The recognition of an asset and
            liability
            related to the funded status provision is effective for fiscal year ending
            after
            December 15, 2006 and the change in measurement date provisions is
            effective for fiscal years ending after December 15, 2008. This
            pronouncement has no effect on the Company at this time.
 
 In
            February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for
            Financial Assets and Liabilities, including an amendment of FASB Statement
            No.
            115” (“SFAS No. 159”). SFAS No. 159 permits entities to choose, at specified
            election dates, to measure many financial instruments and certain other
            items at
            fair value that are not currently required to be measured at fair value.
            Unrealized gains and losses shall be reported on items for which the
            fair value
            option has been elected in earnings at each subsequent reporting date.
            SFAS No.
            159 is effective for fiscal years beginning after November 15, 2007.
            Early
            adoption is permitted as of the beginning of a fiscal year that begins
            on or
            before November 15, 2007, provided the entity also elects to apply the
            provisions of SFAS No. 157 “Fair Value Measurements” (“SFAS No. 157”). The
            Company is currently assessing the impact that SFAS No. 159 will have
            on its
            financial statements.
 
 **NOTE
                      3-**
                  **ACCOUNTS
                      PAYABLE AND ACCRUED
                      EXPENSES**
 
 The
            following represents the Company’s accounts payable and accrued expenses as of
            August 31, 2007:
 
 Professional
                        Fees
                    
                    $
                    11,873
 **13**
 **CAPITAL
                    SOLUTIONS I, INC.**
 **NOTES
                    TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**
 **(UNAUDITED)**
 **AUGUST
                    31, 2007 AND 2006**
   **NOTE
                        4-**
                    **STOCKHOLDERS’
                        (DEFICIT)**
 
 At
            August
            31, 2007 and 2006, the Company had two classes of stock, preferred and
            common
            stock, each having a par value of $.0000001.
 
 On
            October 19, 2005, the Company took the following actions based on the
            Rescission
            Agreement to cancel 30,000,000 shares of common stock, which had been
            issued to
            the Bedrock Shareholders, and certain other individuals have been cancelled
            and
            returned to the treasury.
 
 **Preferred
            Stock**
 
 On
            June
            17, 2005, the Company decreased its authorized shares from 200,000,000
            to
            20,000,000 shares.  The par value remains the same at $.0000001 per
            share.
 
 **Common
            Stock**
 
 On
            June
            17, 2005, a 1:10 reverse stock split of the Company’s common stock became
            effective.  This stock split decreased the issued and outstanding
            shares from 783,667,072 to 78,366,672.  Additionally, the authorized
            shares of common stock decreased from 20,000,000,000 to
            900,000,000.  The par value remains the same at $.0000001 per
            share.
 
 On
            January 31, 2006, a 1:500 reverse stock split of the Company’s common stock
            became effective.  This stock split decreased the issued and
            outstanding shares from 78,366,672 to 96,372.
 
 In
            the
            year ended May 31, 2006, related party debt of $80,116 was forgiven and
            converted to equity.
 
 On
            October 10, 2006, the Company retired 30,000 shares of its common stock
            and has
            retroactively applied this retirement of shares to prior periods.
 
 **NOTE
                      5-**
                  **PROVISION
                      FOR INCOME TAXES**
 
 The
            Company did not provide for income taxes for the three months ended August
            31,
            2007. Additionally, the Company established a valuation allowance equal
            to the
            full amount of the deferred tax assets due to the uncertainty of the
            utilization
            of the operating losses in future periods.
 **14**
 **CAPITAL
                      SOLUTIONS I, INC.**
 **NOTES
                      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**
 **(UNAUDITED)**
 **AUGUST
                      31, 2007 AND 2006**
   **NOTE
                          5-**
                      **PROVISION
                          FOR INCOME TAXES
                          (CONTINUED)**
 
 At
            August
            31, 2007, the deferred tax assets consist of the following:
  **2007**Deferred
                        taxes due to net operating losscarryforwards
                    
                    $
                    197,096Less:  Valuation
                        allowance
                    
                    
                    (197,096
                    )Net
                        deferred tax asset
                    
                    $
                    -
 **NOTE
                      6-**
                  **LOANS
                      PAYABLE – RELATED
                      PARTY**
 
 As
            of
            August 31, 2007, the Company has received a total of $20,000 in the form
            of
            advances from affiliated companies either in the form of cash or through
            the
            affiliated companies payment of legal and professional fees on behalf
            of the
            Company.
 
 **NOTE
                      7-**
                  **EXPIRATION
                      OF DEBT**
 
 The
            Company has recognized $629,707 of income as certain debt and related
            costs
            expired during the quarter ending August 31, 2006.  The Company had
            outstanding convertible debentures in the amount of $400,202, which matured
            August 27, 2003.  The debentures had been reported as a current
            liability in previous quarters.  Under Colorado Law, these debentures
            along with the associated interest accrued and expenses of $229,505 have
            expired. The debenture holders have satisfied the debt in full.
 
 **NOTE
                      8-**
                  **GOING
                      CONCERN**
 
 As
            shown
            in the accompanying condensed consolidated financial statements the Company
            has
            incurred capital deficits and has had net operating losses from continuing
            operations for the three months ended August 31, 2007.  The Company
            did however, with the exception of the expiration of debt totaling $629,707,
            had
            income from operations for the year ended May 31, 2007. The Company has
            no
            revenues to support itself.
 
 In
            view
            of these matters, continuing as a going concern is dependent upon the
            Company’s
            ability to raise additional capital, and to secure a future business
            combination. Management believes that actions planned and presently being
            taken
            to revise the Company’s operating and financial requirements provide the
            opportunity for the Company to continue as a going concern.
 
 The
            condensed consolidated financial statements do not include any adjustments
            that
            might result from the outcome of these
            uncertainties.






**15**


**Item
                2.**
            **Management's
                Discussion and Analysis or Plan of
                Operation.**





THE  FOLLOWING  DISCUSSION  SHOULD  BE
      READ  IN  CONJUNCTION WITH  THE COMPANY'S
      FINANCIAL  STATEMENTS  AND THE  NOTES TO
      THOSE  STATEMENTS  AND OTHER FINANCIAL INFORMATION APPEARING
      ELSEWHERE IN THIS REPORT.





**OVERVIEW**





Capital
      Solutions I, Inc. (the
“Company,” “we,” “our,” “ours” and “us”) was incorporated in Delaware as "Magnum
      Communications Corp." in 1969 and changed its name to Vacation Ownership
      Marketing, Inc. in 1980. Coinciding with the name change, we changed our
      business to the development and marketing of time-shared condominiums which
      continued until 1983. From 1983 until August 29, 2001, we were not engaged
      in
      any business. On August 29, 2001, we acquired Encore Builders, Inc., a
      construction company, through what was then a subsidiary of the Company.
      Beginning on August 29, 2001 we engaged in the construction of Conquistador
      Plaza Apartments in Miami, Florida, pursuant to a lump sum construction contract
      with Conquistador Plaza. These operations ceased with the separation of Encore
      Builders from us in the first quarter of 2002. On May 10, 2004 we changed our
      names to our present name, Capital Solutions I, Inc.





Management's
      plans





Our
      plan is to seek, investigate, and
      if such investigation warrants, consummate a merger or other business
      combination, purchase of assets or other strategic transaction (i.e. Merger)
      with a corporation, partnership, limited liability company or other business
      entity (a "Merger Target") desiring the perceived advantages of becoming a
      publicly reporting and publicly held corporation. At this time, we have no
      binding agreement to enter into a Merger with any specific business or company.
      Discussion of management's plan of operation under this caption and throughout
      this filing is purposefully general and is not meant to restrict our virtually
      unlimited discretion to search for and enter into potential business
      opportunities.




We
      will not restrict our search to any
      specific business, industry, or geographical location, and may participate
      in
      business ventures of virtually any kind or nature. We may seek a Merger with
      an
      entity which only recently commenced operations, or a developing company in
      need
      of additional funds to expand into new products or markets or seeking to develop
      a new product or service, or an established business which may be experiencing
      financial or operating difficulties and needs additional capital which is
      perceived to be easier to raise by a public company. Indeed, our most common
      merger candidates are often companies that lack the ability to conduct an IPO,
      or whose business industry is not well received by the investment banking
      community. In some instances, a Merger may involve entering into a transaction
      with a corporation which does not need substantial additional cash but which
      desires to establish a public trading market for its common stock. We may
      purchase assets and establish wholly-owned subsidiaries in various businesses
      or
      purchase existing businesses as subsidiaries. It is impossible to predict at
      this time the status of any business in which we may become
      engaged.





Selecting
      a Merger Target will be
      complex and involve a high degree of risk. Because of general economic
      conditions, rapid technological advances being made in some industries, and
      shortages of available capital, management believes that there are numerous
      entities seeking the benefits of being a publicly-traded corporation. Many
      potential Merger Targets are in industries that have essentially not presented
      well in the conventional IPO market, regardless of their financial success,
      and
      suffer from low initial valuations. The perceived benefits of being a publicly
      traded corporation may include facilitating or improving the terms on which
      additional equity financing may be sought, providing liquidity (subject to
      restrictions of applicable statutes and regulations) for the principals of
      a
      business, creating a means for providing incentive stock options or similar
      benefits to key employees, providing liquidity (subject to restrictions of
      applicable statutes and regulations) for all stockholders, and other items.
      Potential Merger Targets may exist in many different industries and at various
      stages of development, all of which will make the task of comparative
      investigation and analysis of such Merger Targets extremely difficult and
      complex.





**16**


We
      believe we can offer owners of
      Merger Targets the opportunity to acquire a controlling ownership interest
      in a
      public company at substantially less cost than is required to conduct an initial
      public offering. Nevertheless, we have not conducted any specific market
      research and we are not aware of statistical data which would support the
      perceived benefits of a Merger or acquisition transaction for the owners of
      a
      Merger Target.





In
      implementing a structure for a
      particular business acquisition, we may become a party to a merger,
      consolidation, reorganization, joint venture, or licensing agreement with
      another corporate entity. We may also seek to acquire stock or assets of an
      existing business. On the consummation of a transaction, it is probable that
      our
      present management and stockholders will no longer be in control of our company;
      In addition, our directors may, as part of the terms of the acquisition
      transaction, resign and be replaced by new directors without a vote of our
      stockholders or may sell their stock. Any terms of the sale of the shares
      presently held by the officers and/or directors will be also afforded to all
      other stockholders on similar term and conditions. Any and all such sales will
      only be made in compliance with federal and applicable state securities
      laws.





We
      anticipate that any securities
      issued in such any such reorganization would be issued in reliance upon
      exemption from registration under the applicable federal and state securities
      laws. In some circumstances, however, as negotiated element of a transaction,
      we
      may agree to register all or a part of such securities immediately after the
      transaction is consummated or at specified times thereafter. If such
      registration occurs, of which there can be no assurance, it will be undertaken
      by the surviving entity after we have successfully consummated a merger or
      acquisition and we are no longer considered a "shell" company. Until such time
      as this occurs, we will not attempt to register any additional securities.
      The
      issuance of substantial additional securities and their potential sale into
      the
      trading market which may develop in our securities may have a depressive effect
      on the value of our securities in the future, if such a market develops, of
      which there is no assurance.





While
      the actual terms of a transaction
      to which we may be a party cannot be predicted, it may be expected that the
      parties to the business transaction will find it desirable to avoid the creation
      of a taxable event and thereby structure the acquisition in a so-called
      "tax-free" reorganization under Sections 368(a)(1) or 351 of the Internal
      Revenue Code. In order to obtain tax-free treatment, it may be necessary for
      the
      owners of the acquired business to own 80% or more of the voting stock of the
      surviving entity. In such event, our stockholders would retain less then 20%
      of
      the issued and outstanding shares of the surviving entity, which would result
      in
      significant dilution in the equity of such holders.





We
      will participate in a business
      opportunity only after the negotiation and execution of appropriate written
      agreements, Although the terms of such agreements cannot be predicted, generally
      such agreements will require some specific representations and warranties by
      all
      of the parties thereto, will specify certain events of default, will detail
      the
      terms of closing and the conditions which must be satisfied by each of the
      parties prior to and after such closing, will outline the manner of bearing
      costs, including costs associated with our attorneys and accountants, will
      set
      forth remedies on default and will include miscellaneous other
      terms.





We
      do not intend to make any loans to
      any prospective acquisition or merger candidates or to unaffiliated third
      parties or to obtain funds in one or more private placements to finance the
      operation of any acquired business opportunity until such time as we have
      successfully consummated such a Merger, if ever. We do not intend to provide
      our
      stockholders with any complete disclosure documents, including audited financial
      statements, concerning an acquisition or merger candidate and its business
      prior
      to the consummation of any acquisition or merger transaction, so stockholders
      will be dependent upon the judgment of current management and our Board of
      Directors regarding the fairness of any transaction.





There
      can be no assurance that we will
      find a suitable Merger Target. If no such Merger Target is found, no return
      on
      an investment in our securities will be realized, and there will not, most
      likely, be a market for the Company's stock.





**17**


**RESULTS
      OF OPERATIONS**





**THREE
      MONTHS ENDED AUGUST 31, 2007**


**COMPARED
      TO THREE MONTHS ENDED AUGUST 31, 2006**





Revenues





Revenues
      were $0 for the three months ended August 31, 2007 and the three months ended
      August 31, 2006.





Operating
      Expenses





Operating
      expenses for the three months ended August 31, 2007 were $2,536 compared to
      $36
      for the three months ended August 31, 2006. This increase was attributed to
      accounting and audit fees.





Other
      Income





In
      the
      quarter ended August 31, 2006 the Company recognized a one time other income
      charge in the amount of $629,707 as a result of the write off and forgiveness
      of
      the debt associated with our outstanding debentures.





Income
      (Loss) From Operations





Loss
      from
      operations for the three months ended August 31, 2007 was ($2,536) compared
      to
      income of $629,671 for the three months ended August 31, 2006.





Net
      Income (Loss) Applicable To Common Stock





Net
      loss
      applicable to Common Stock was ($0.03) for the three months ended August 31,
      2007, compared to net income of $6.51 for the three months ended August 31,
      2006.





**18**


**LIQUIDITY
      AND CAPITAL RESOURCES**





As
      of August 31, 2007, we had current
      assets consisting of cash and cash equivalents in the amount of $271. As of
      August 31, 2007, we had current liabilities consisting of accounts payable
      and
      short term notes payable in the amount of $31,873.





In
      connection with the plan to seek new
      business opportunities and/or effecting a business combination, we may seek
      to
      raise funds from the sale of restricted stock or debt securities. We have no
      agreements to issue any debt or equity securities and cannot predict whether
      equity or debt financing will become available at acceptable terms, if at
      all.





Our
      limited resources and lack of
      recent operating history may make it difficult to borrow funds or raise capital.
      Such inability to borrow funds or raise funds through the issuance of restricted
      common stock required to effect or facilitate a business combination may have
      a
      material adverse effect on our financial condition and future prospects,
      including the ability to complete a business combination. To the extent that
      debt financing ultimately proves to be available, any borrowing will subject
      us
      to various risks traditionally associated with indebtedness, including the
      risks
      of interest rate fluctuations and insufficiency of cash flow to pay principal
      and interest, including debt of an acquired business.





RECENT
      ACCOUNTING PRONOUNCEMENTS





We
      continue to assess the effects of
      recently issued accounting standards. The impact of all recently adopted and
      issued accounting standards has been disclosed in the Notes to the audited
      Consolidated Financial Statements.





CRITICAL
      ACCOUNTING ESTIMATES





We
      are a shell company and, as such, do
      not employ critical accounting estimates. Should we resume operations, we will
      employ critical accounting estimates and will make any disclosures that are
      necessary and appropriate.





**19**


**RISK
      FACTORS**





IN
      ADDITION TO OTHER INFORMATION IN THIS REPORT, YOU SHOULD CONSIDER THE FOLLOWING
      RISK FACTORS CAREFULLY. THESE RISKS MAY IMPAIR OUR OPERATING RESULTS AND
      BUSINESS PROSPECTS AS WELL AS THE MARKET PRICE OF OUR COMMON STOCK.





RISKS
      RELATED TO OUR FINANCIAL CONDITION AND BUSINESS MODEL





OUR
      LIQUIDITY IS LIMITED AND WE MAY NOT


BE
      ABLE
      TO OBTAIN SUFFICIENT FUNDS TO FUND OUR BUSINESS





Our
      cash is currently very limited and
      may not be sufficient to fund future operations. Although future operations
      are
      limited, we will incur expenses in maintaining our filing requirements in
      accordance with the Securities Exchange Act of 1934.  If we are unable
      to raise additional capital, any future operations could be
      impeded.  If we obtain additional funding, the issuance of additional
      capital stock may be dilutive to our stockholders.





WE
      CURRENTLY HAVE NO OPERATIONS





We
      have not had operations since March
      20, 2002.





IT
      MAY BE
      DIFFICULT TO CONSUMMATE A


MERGER
      OR
      ACQUISITION WITH A PRIVATE ENTITY





Our
      purpose will include locating and
      consummating a merger or acquisition with a private entity. We anticipate the
      selection of a business opportunity in which to participate will be complex
      and
      extremely risky. We have, and will continue to have, little or no capital with
      which to provide the owners of business opportunities with any significant
      cash
      or other assets. However, we will be able to offer owners of acquisition
      candidates the opportunity to acquire a controlling ownership interest in a
      publicly registered company without incurring the cost and time required to
      conduct an initial public offering. Such an acquisition candidate will, however,
      incur significant legal and accounting costs in connection with an acquisition
      of the Company, including the costs of preparing current and periodic reports,
      various agreements and other documents.








**20**


**OTHER
      RISKS**





OUR
      STOCK
      PRICE HAS DECLINED AND THE STOCK IS THINLY TRADED





The
      trading price of our common stock
      has declined significantly since approximately October 2001. Although the stock
      price recovered for a short period of time after the June, 2005 reverse split,
      and again after the January, 2006 reverse split, it has since declined again.
      The market for our common stock  is without significant volume and
      there can be no assurance of a change in the immediate future.





PENNY
      STOCK REGULATIONS AND REQUIREMENTS FOR LOW PRICED STOCK





The
      SEC adopted regulations which
      generally define a "penny stock" to be any non-Nasdaq equity security that
      has a
      market price of less than $5.00 per share, subject to certain exceptions. Based
      upon the price of our common stock as currently traded on the OTC Bulletin
      Board, we are subject to Rule 15g-9 under the Exchange Act which imposes
      additional sales practice requirements on broker-dealers which sell securities
      to persons other than established customers and "accredited investors." For
      transactions covered by this rule, a broker-dealer must make a special
      suitability determination for the purchaser and have received a purchaser's
      written consent to the transaction prior to sale. Consequently, this rule may
      have a negative effect on the ability of stockholders to sell our common shares
      in the secondary market.





ADDITIONAL
      DEBT, CONVERTIBLE DEBT, OR EQUITY FINANCING MAY EFFECT ABILITY OF INVESTORS
      TO
      SELL COMMON STOCK





Our
      common stock currently trades on
      the OTC Bulletin Board. Stocks trading on the OTC Bulletin Board generally
      attract a smaller number of market makers and a less active public market and
      may be subject to significant volatility. If we raise additional capital from
      the sale of common stock, the market price could drop and the ability of
      investors to sell our common stock could be diminished.





**21**




**ITEM
                2.**
            **DESCRIPTION
                OF PROPERTY**





Our
      principal executive offices are
      located at One NE First Avenue, Suite 306, Ocala, Florida 34470. We do not
      have
      a lease but rather shares office space with our officers and directors and
      we
      pay no rent for the leased space. We do not own any properties nor does we
      lease
      any other properties. We do not believe we will need to maintain an office
      at
      any time in the foreseeable future in order to carry out our plan of
      operations.





**ITEM
                3.**
            **CONTROLS
                AND PROCEDURES**





EVALUATION
      OF DISCLOSURE CONTROLS AND PROCEDURES





Our
      Chief Executive Officer and Chief
      Financial Officer, Christopher Astrom, has reviewed and evaluated the
      effectiveness  of our disclosure controls and procedures (as defined
      in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period
      covered by this quarterly report on Form 10-QSB.  Based on that
      evaluation, Christopher Astrom determined that he and Richard Astrom, our only
      two directors and officers, are the only individuals involved in our disclosure
      process. We have no specific procedures in place for processing and assembling
      information to be disclosed in our periodic reports. Our system is designed
      so
      that information is retained by us and relayed to counsel as it becomes
      available. We currently operate as a shell corporation because we have no
      revenue, significant assets or independent operations and plan to establish
      more
      reliable disclosure controls and procedures before merging or entering into
      any
      other business combination with another company. Our Chief Executive Officer
      and
      Chief Financial Officer believe that, as of the end of the period covered by
      this report, our disclosure  controls and procedures are effective to
      ensure that information  required to be disclosed by us in the reports
      that it filed or submits under the Exchange Act is recorded, processed,
      summarized and reported, within the required time periods.
      Further,  we believe that, given its size, an extensive disclosure
      controls and procedures system is not necessary.





Changes
      in Internal Control Over Financial Reporting





No
      significant changes in our internal
      control over financial reporting have come to management's attention during
      the
      our previous fiscal quarter that have materially affected, or are likely to
      materially affect, our internal control over financial reporting.





**22**


**PART
      II**


**OTHER
      INFORMATION**





**ITEM
                1.**
            **LEGAL
                PROCEEDINGS**





We
      are not a party to any pending legal
      proceedings nor is any of our property the subject of any pending legal
      proceedings.








**ITEM
                2.**
            **UNREGISTERED
                SALES OF EQUITY SECURITIES AND USE OF
                PROCEEDS.**





none





**ITEM
                3.**
            **DEFAULTS
                UPON SENIOR SECURITIES**








**ITEM
                4.**
            **SUBMISSION
                OF MATTERS TO A VOTE OF SECURITIES
                HOLDERS**





We
      did not submit any matters to a vote
      of our stockholders, through the solicitation of proxies or otherwise, during
      the first quarter of fiscal 2008.





**ITEM
                5.**
            **OTHER
                INFORMATION**





GOING
      CONCERN





We
      have incurred recurring operating
      losses and do not have any revenue generating activities.  These
      conditions raise substantial doubt about our ability to continue as a going
      concern.  If at any time we determine that we do not have sufficient
      cash in order to execute the foregoing strategy, then we intends to seek
      additional equity or other funding, if practicable. However, there can be no
      assurance that we will be able to raise additional funding necessary to
      operate.




**ITEM
                6.**
            **EXHIBITS**






**EXHIBIT**
              **NUMBER**
            
            **DESCRIPTION**31.1
            
            Certification
              of Principal Executive Officer and Principal Financial Officer pursuant
              to
              Sarbanes-Oxley Section 30232.1
            
            Certification
              of Chief Executive Officer and Chief Financial Officer pursuant to
              Sarbanes-Oxley Section 906







**23**


**SIGNATURES**





In
      accordance with Section 13 or 15(d)
      of the Securities Exchange Act of 1934, the registrant has duly caused this
      report to be signed on its behalf by the undersigned, thereunto duly
      authorized.




**CAPITAL
              SOLUTIONS I,
              INC.**/s/ CHRISTOPHER
              ASTROMBy:  Christopher
              AstromCHIEF
              EXECUTIVE OFFICERCHIEF
              FINANCIAL OFFICERDate:
              October 22, 2007


In
      accordance with the Exchange Act,
      this report has been signed below by the following persons on behalf of the
      registrant and in the capacities and on the dates indicated:




/s/ CHRISTOPHER
              ASTROMBy:  Christopher
              AstromDirectorDate:
              October 22, 2007




/s/ RICHARD
              ASTROMBy:  Richard
              AstromDirectorDate:
              October 22, 2007



















**24**