Arsenal had stuffed Wigan in the previous round but were beaten 2-0 at Burnley with McDonald scoring in either half.
At the Britannia Stadium, a Nathan Ellington penalty five minutes into stoppage time at the end of the game saw Derby County through.
Locally, Bedworth United won 1-0 at Bury Town. A 68th minute Lamb penalty was enough to give the Greenbacks a win in front of a crowd of 150.
There was 226 at Sheepy Road for Atherstone against Leamington in the Southern League Cup Second Round. Hurley put the Brakes ahead in the 21st minute but goals in the second half from Clamp & Hood gave Jimmy Ginnelly's side the win.
Stratford Town were pegged back from 4-1 up against Alvechurch in a Midland Alliance fixture. Former Birmingham City player Paul Devlin was one of the scorers as Micky Moore's side led 4-1 at the break. Green and two goals from Callum Gittings with his second in stoppage time earned the Worcestershire side a draw.
A 2-1 win for Barwell at Highgate United sees them leapfrog Coventry Sphinx into third place.
In the Midland Combination, Coventry Copsewood were beaten 4-3 at home by Heather St John. The Leicestershire side lead 3-0 at the break through a brace from Roy Dunkley and a goal from Turville. Craig Martin, pulled one back before Dunkley completed his hat-trick in the 47th minute. PJ Gordon and Martin hit his second of the night but Carl Nolan's side went down to a defeat.
At Banner Lane, Massey Ferguson drew 1-1 with Nuneaton Griff. Ashley Wilks put Griff ahead but Ollie Manoochehri equalised.
Southam United won 4-3 at Pilkington. Graham, Adams, a Gariss own goal and a goal from Friend, keept Southam pushing for promotion.