ckinzel - It is noted and you can take credit for solving the problem - a good application of the use of "our friend the capo".
However, I find that with the mandolin, a capo is not always my friend. Have you ever seen a mandolin player in a bluegrass group (with banjo and guitar capoed)using a capo?
Using a capo on a mandolin (even two frets up)seriously bothers by left hand and limits the ease of playing some chords on the already cramped fretboard. Using four finger chords (bluegrass chords) is the answer. You won't have any open strings, but once you've made the chords most of the melody notes are "in the chord".