The time capsule is buried where the girls are talking in the Playground. But you need to get them to move and the map that shows the location, and some way to dig it up.
See the related question.
Once you have taken the time capsle out, click on the little yellow lock. You have now opened the time capsle.
There is no shovel. The time capsule is eventually dug up by the lost dog, Spitsy, who is trying to bury some peanut butter crackers. (see related question)
If you read the "missing dog" posters, you will see that Spitsy the dog is loose. He's on the playground and will dig a hole if you give him a peanut butter cracker. The problem is that not all areas can be dug into. (see related questions)
It will not come all the way out of the ground.Once Spitsy digs the hole and you click on the gray box (the Time Capsule), it will come to the top of the hole and stop. After several tries at getting it out, most players find and press the shiny clasp that opens the box.
they dug big holes and stayed in there
They did by using dug-out tree logs.
150 feet. wow.
They dug a canal
hole
Only once in the right spot. When he has finished if he has dug in the right spot there will be a bit of silver sticking out,click on it then drag it out of the hole. when you can't move it anymore, click the gold clasp on it. Hope this help!;-)
They used it to expand Ellis island
The Panama Canal is a waterway, partly dug and partly using natural formations.