Physical layer capture (PLC) in 802.11b refers to the successful reception of the stronger (higher signal strength at receiver) frame in a collision. PLC causes significant imbalance in the throughputs of sources. Existing 802.11b simulators, including NS-2 and Qualnet, assume that PLC occurs only if the reception of stronger frame starts first at the receiver. We show empirically that in reality PLC occurs even if the stronger frame arrives later (but within the physical layer preamble of the first frame). We have modified the NS-2 simulator to account for this and Qualnet will be incorporating a fix in their next release. Simulations using the latter PLC model generate significantly (up to 15\%) higher, and more realistic, throughput unfairness than with the former PLC model. We also show that time-instants of start of colliding frames routinely differ by as much as 20 $\mu s$ due to inherent uncertainties of 802.11b firmware clock synchronization and rx/tx turnaround delays, and that the frame to arrive first can be either the stronger or the weaker with equal likelihood. To identify which frames were involved in collisions, when their transmissions started, and which of them were retrieved, we have devised a novel technique using multiple sniffers and instrumented device drivers to reconstruct from the air interface all tx/rx events in a WLAN to within 4 $\mu s$ accuracy. This allows us to quantify the causal links from the PHY layer through the MAC layer to the observed application layer imbalance, which may be as high as \textbf{25 \%} with two sources and \textbf{ 75 \%} with four sources as seen in experiments spanning ad-hoc and infrastructure modes with both UDP and TCP workloads. UMIACS-TR-2004-26