Ok, old thread, but might as well update for anyone who stumbles cross it:
You CAN steep CaraPils, as stated by Briess in this PDF (pg. 3 under "How do I use it?")http://www.brewingwithbriess.com/Assets/PDFs_BWB/Briess_Newsletter_2009summer.pdf
Good find funkswing.
Found the answer I was looking for. Thanks OP and homebrew talk!
Hmm... draggin' the bottom for this thread.
I'm brewing a hopped up dark pale ale right now (Steelhead Red Pale Ale), and I steeped a half pound of Carapils. I've used a half pound of it in almost every single beer I've ever brewed.