Carrying the torch of Queen St. W. used guitar stores (since Songbird closed), Capsule is always great for eye-candy.
Lots of beautiful instruments throughout the store, with some interesting selection.
I've found the staff to be a bit short and inattentive, which kind of keeps me from going back here too often.
Its a really small space, so try to avoid it when its busy or going with large groups of people.
I haven't used their guitar repair service, but they would probably be one of the first shops I'd get in touch with if I needed any work done.