Micky Adams' Brighton & Hove Albion beat Manchester City in a second round tie. At Withdean, the game finished 2-2 and the League One side won 5-3 on penalties with Matt Richaards scoring the decisive kick.
At Villa Park, Iain Dowie's QPR won 1-0. Damien Stewart scored the only goal of the game in the 58th minute.
Newcastle, who beat City in the last round are out after a 2-1 home defeat by Tottenham Hotspur. Blackburn beat Everton 1-0, Wigam won 4-1 at Ipswich and Portsmouth were beaten 4-0 at home by Chelsea.
In Scotland, former Coventry City Academy and Reserve team keeper Jonny Tuffey bravely denied Rangers in a league Cup tie but his Partick Thistle side were beaten 2-1 in extra time.