Using the most recent release ode-0.16.6 and also checking back to release ode-0.16.3, the same problem appears in each. The problem is that while cylinder shapes dCreateCylinder collide correctly with planes, boxes, and spheres, they pass completely through other cylinders. The also pass through capsules dCreateCapsule. Capsules, however, do collide with each other and other shapes that are not cylinders.
I could not find this issue on any bug tracker, but am confident you regulars know about this issue. Are there any plans to fix this and what is the history with this problem?