"How do you think the capitalization of assets will effect the actual Q4/2008 and 2009 CAPEX numbers?"

Not sure that I understand your question, but here goes...

By capitalizing initial startup costs of Algar(steaming, testing etc), Capex will be increased but profits will be earned more easily or losses reduced in the period when these costs are incurred, because the costs won't appear as expenses. I don't expect these costs to be incurred until late 2009 or early 2010. Therefore the effect of this capitalization wont happen in Q4/2008 and maybe not until 2010.

" After all everything has to be paid for (including initial cost)."

The net effect of capitalizing startup costs will be to spread these costs over a longer period in the form of a depreciation charge. Depending upon the depreciation period used, the costs will be spread over a large number of years.

Hope that answers your question.

XBB