The problem is not only the formation in the Champions League, but also our attitudes towards the matches that Capello has an influence over. The 4-4-2 is very adept in the Serie A against sides such as Udinese and Lecce because we can simply suffocate anything they do with our defense and wall of four in midfield while taking our time in posession. We simply go through the motions and usually grab a goal or two after pieces of individual brilliance or mistakes by the opponents. We also rarely create more than five great opportunities to score during our matches, which would be frightening if we did not have such a lethal finisher in Trezeguet spearheading our attack.
But this sort of thing doesn't work in Europe. Why? Because the best sides in Europe are quite superior to the average team in Serie A and simply exploit our sluggishness as soon as the first kick of the ball is made. For some reason we always step out on the pitch flat and lethargic, and thus far in away matches in the Champions League with Capello at the helm we always seem to concede an early goal. Against Liverpool, Bayern, and Bremen we were played off the park in the first half of each respective match, and if this trend continues we will simply not be able to recover from such a sluggish start...especially if we play a side who can pack it in like Liverpool. When you play Juventus all you have to do is come out with guns blazing, score a few goals, then pack in the defense and stiffle our clumsy attack.
So to remedy these weaknesses, something Capello will not do mind you, I would play to our strengths and field a trident attack, thus placing Nedved on the bench and bringing in Mutu...a player who we should have been using from DAY ONE. I would also change our mentality from match to match and not continue chugging along, playing at the same lethargic pace all the time. That simply doesn't work in Europe with managers such as Mourinho who can see these trends coming from a mile away.
I think the biggest issue in the Champions League is seemingly coming unprepared to play and not fielding the right players...this comes before the formation switch, however that is indeed important as well, and both of which Capello controls. But if we continue to start each match in the Champions League looking like we have a huge hangover, we will crash out of this tournament sooner or later. The scary thing is it could already be too late... especially if we are told to be "patient" at the Delle Alpi..