Liverpool suffered a shock defeat at Anfield on penalties by League Two Northampton. Manchester United score five at Scunthorpe and Newcastle hit four at Chelsea. Manchester United came from behind at Scunthorpe to record a 5-2 victory at Glanford Park.
Josh Wright put the underdogs ahead with superb strike after 19 minutes.
Michael Owen's clinical finish four minutes after the restart added to the scoreline as the Reds quality began to tell.
Ji Sung Park drove home a fourth after Scunthorpe had rallied, while Owen capped off an enjoyable return to first team action by making it five.
Martyn Woolford restored some pride for the home side in stoppage time to finish the scoring at 5-2.
Chelsea suffered their first defeat of the campaign as they went down 4-3 at home to Newcastle in a thrilling encounter.
The Toon responded after falling 1-0 behind by notching three goals but Chelsea, down to 10 men following the loss of Salomon Kalou and Yossi Benayoun to injury, unleashed a superb comeback of their own thanks to a Nicolas Anelka double.
However, Shola Ameobi found the match-winner and his second of the night deep into the 90th minute.
Northampton enjoyed a famous win over Liverpool after overcoming the seven time winners 4-2 on penalties after a 2-2 draw at the end of extra-time at Anfield.
Liverpool went ahead through Milan Jovanovic after just nine minutes with his first goal for the club.
Billy Mckay drew Northampton level on 56 minutes when he blasted home from close-range to send the game into extra-time.
The Cobblers then stunned the home side when Michael Jacobs fired the visitors in front eight minute into the first period of extra-time.
David Ngog levelled four minutes from the end of extra-time when he headed home from close-range to send the game into a fruitless penalty shoot-out.
New Aston Villa boss Gerard Houllier claimed his first win with a 3-1 win against Blackburn in the Carling Cup at Villa Park.
Rovers were the better side in the first half and took a deserved lead through Gael Givet and should have increased their advantage.
Wigan came within three minutes of losing to Championship side Preston but two late goals put the Latics through.
Keith Treacy put North End ahead in the first half and it stayed that way until the 87th minute.
Jo gave a much-changed City the lead after 19 minutes, but the Baggies turned the game on its head with two quick-fire goals in the second half.