SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


        Date of Report (Date of earliest event reported): August 14, 2006
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                      ATEL Capital Equipment Fund VII, L.P.
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             (Exact name of registrant as specified in its charter)


          California                000-24175                     94-3248318
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(State or other jurisdiction       (Commission                  (IRS Employer
      of incorporation)             File Number)             Identification No.)


     600 California Street, 6th Floor, San Francisco, California 94108-2733
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            (Address of principal executive offices)             (Zip Code)


       Registrant's telephone number, including area code: (415) 989-8800
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                                       N/A
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          (Former name or former address, if changed since last report)







Item 5.02

         (c) On August 14, 2006, Samuel Schussler, age 53, was appointed Chief
Accounting Officer of ATEL Capital Group and its affiliates, including ATEL
Financial Services, LLC, the Registrant's General Partner. Mr. Schussler will,
by virtue of his position with the Registrant's General Partner, act as the
Registrant's Chief Accounting Officer.

         Mr. Schussler served as senior vice president - finance for Velocity
Express Corporation, Westport, Connecticut, from 2004 through March of 2006.
From 2001 through 2003, he served as chief operating officer and chief financial
officer of New Century Packaging LLC in Scottsdale, Arizona. From 1999 through
2001, Mr. Schussler served as vice president - finance and chief financial
officer of Biogenix Laboratories, Inc. in San Ramon, California.



SIGNATURES

Pursuant to the requirements 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.

Dated:   August 16, 2006

            ATEL Capital Equipment Fund VII, L.P.

                    By: ATEL Financial Services, LLC,
                    a California limited liability company,
                    General Partner

                             By:  ATEL Leasing Corporation, Manager

                                      By:   /s/ PARITOSH K. CHOKSI
                                            -----------------------------
                                            Paritosh K. Choksi, Executive Vice
                                            President, Chief Financial Officer
                                            and Chief Operating Officer