--------------------------------------
                                                     OMB APPROVAL
                                        --------------------------------------
                                        OMB Number: 3235-0145
                                        Expires: February 28, 2009
                                        Estimated average burden hours
                                        per response:                     10.4




                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                  SCHEDULE 13G

                    UNDER THE SECURITIES EXCHANGE ACT OF 1934

                               (AMENDMENT NO. 2)*

                              eLoyalty Corporation
--------------------------------------------------------------------------------
                                (Name of Issuer)

                                  Common Stock
--------------------------------------------------------------------------------
                         (Title of Class of Securities)

                                    290151307
--------------------------------------------------------------------------------
                                 (CUSIP Number)

                                December 31, 2007
--------------------------------------------------------------------------------
             (Date of Event Which Requires Filing of this Statement)



Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:

[ ] Rule 13d-1(b)

[X] Rule 13d-1(c)

[ ] Rule 13d-1(d)


*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).



--------------------------------------------------------------------------------
CUSIP No.  290151307

--------------------------------------------------------------------------------

1. Names of Reporting Person Alydar Capital, LLC
I.R.S. Identification Nos. of above persons (entities only)

--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) X
(b) [ ]
--------------------------------------------------------------------------------
3. SEC Use Only

--------------------------------------------------------------------------------
4. Citizenship or Place of Organization: Delaware

--------------------------------------------------------------------------------
Number of               5. Sole Voting Power: 0
Shares                  6. Shared Voting Power: 262,269
Beneficially            7. Sole Dispositive Power: 0
Owned by                8. Shared Dispositive Power: 262,269
Each Reporting
Person With



--------------------------------------------------------------------------------
9. Aggregate Amount Beneficially Owned by Each Reporting Person. 262,269
--------------------------------------------------------------------------------
10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See
    Instructions).
--------------------------------------------------------------------------------
11. Percent of Class Represented by Amount in Row (9)  2.671%
--------------------------------------------------------------------------------
12. Type of Reporting Person (See Instructions)  IA
--------------------------------------------------------------------------------




--------------------------------------------------------------------------------
CUSIP No.  290151307


--------------------------------------------------------------------------------
1. Names of Reporting Person: Alydar Partners, LLC
I.R.S. Identification Nos. of above persons (entities only)

--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) X
(b) [ ]
--------------------------------------------------------------------------------
3. SEC Use Only

--------------------------------------------------------------------------------
4. Citizenship or Place of Organization: Delaware

--------------------------------------------------------------------------------
Number of               5. Sole Voting Power: 0
Shares                  6. Shared Voting Power: 900,000
Beneficially            7. Sole Dispositive Power: 0
Owned by                8. Shared Dispositive Power: 900,000
Each Reporting
Person With
--------------------------------------------------------------------------------
9. Aggregate Amount Beneficially Owned by Each Reporting Person. 900,000
--------------------------------------------------------------------------------
10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See
    Instructions).
--------------------------------------------------------------------------------
11. Percent of Class Represented by Amount in Row (9)  9.166%
--------------------------------------------------------------------------------
12. Type of Reporting Person (See Instructions)  IA
--------------------------------------------------------------------------------



--------------------------------------------------------------------------------
CUSIP No.  290151307

--------------------------------------------------------------------------------
1. Names of Reporting Person Alysheba Fund, L.P.
I.R.S. Identification Nos. of above persons (entities only)

--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) X
(b) [ ]
--------------------------------------------------------------------------------
3. SEC Use Only

--------------------------------------------------------------------------------
4. Citizenship or Place of Organization: Delaware

--------------------------------------------------------------------------------
Number of               5. Sole Voting Power: 10,130
Shares                  6. Shared Voting Power:  0
Beneficially            7. Sole Dispositive Power: 10,130
Owned by                8. Shared Dispositive Power: 0
Each Reporting
Person With
--------------------------------------------------------------------------------
9. Aggregate Amount Beneficially Owned by Each Reporting Person. 10,130
--------------------------------------------------------------------------------
10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See
    Instructions).
--------------------------------------------------------------------------------
11. Percent of Class Represented by Amount in Row (9) 0.103%
--------------------------------------------------------------------------------
12. Type of Reporting Person (See Instructions)  PN
--------------------------------------------------------------------------------




--------------------------------------------------------------------------------
CUSIP No.  290151307

--------------------------------------------------------------------------------
1. Names of Reporting Person Alysheba QP Fund, L.P.
I.R.S. Identification Nos. of above persons (entities only)

--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) X
(b) [ ]
--------------------------------------------------------------------------------
3. SEC Use Only

--------------------------------------------------------------------------------
4. Citizenship or Place of Organization: Delaware

--------------------------------------------------------------------------------
Number of               5. Sole Voting Power: 252,139
Shares                  6. Shared Voting Power:  0
Beneficially            7. Sole Dispositive Power:  252,139
Owned by Each           8. Shared Dispositive Power: 0
Reporting Person With
--------------------------------------------------------------------------------
9. Aggregate Amount Beneficially Owned by Each Reporting Person. 252,139
--------------------------------------------------------------------------------
10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See
    Instructions).
--------------------------------------------------------------------------------
11. Percent of Class Represented by Amount in Row (9)  2.568%
--------------------------------------------------------------------------------
12. Type of Reporting Person (See Instructions)  PN
--------------------------------------------------------------------------------



--------------------------------------------------------------------------------
CUSIP No.  290151307

--------------------------------------------------------------------------------

1. Names of Reporting Person Alysheba Fund Limited
I.R.S. Identification Nos. of above persons (entities only)

--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) X
(b) [ ]
--------------------------------------------------------------------------------
3. SEC Use Only

--------------------------------------------------------------------------------
4. Citizenship or Place of Organization: Cayman Islands

--------------------------------------------------------------------------------
Number of               5. Sole Voting Power:  637,731
Shares                  6. Shared Voting Power:  0
Beneficially            7. Sole Dispositive Power: 637,731
Owned by                8. Shared Dispositive Power: 0
Each Reporting
Person With
--------------------------------------------------------------------------------
9. Aggregate Amount Beneficially Owned by Each Reporting Person. 637,731
--------------------------------------------------------------------------------
10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See
    Instructions).
--------------------------------------------------------------------------------
11. Percent of Class Represented by Amount in Row (9)   6.495%
--------------------------------------------------------------------------------
12. Type of Reporting Person (See Instructions)  OO
--------------------------------------------------------------------------------



--------------------------------------------------------------------------------
CUSIP No.  290151307

--------------------------------------------------------------------------------
1. Names of Reporting Person John A. Murphy
I.R.S. Identification Nos. of above persons (entities only)

--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) X
(b) [ ]
--------------------------------------------------------------------------------
3. SEC Use Only

--------------------------------------------------------------------------------
4. Citizenship or Place of Organization: United States

--------------------------------------------------------------------------------
Number of               5. Sole Voting Power: 0
Shares                  6. Shared Voting Power: 900,000
Beneficially            7. Sole Dispositive Power: 0
Owned by                8. Shared Dispositive Power: 900,000
Each Reporting
Person With
--------------------------------------------------------------------------------
9. Aggregate Amount Beneficially Owned by Each Reporting Person. 900,000
--------------------------------------------------------------------------------
10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See
    Instructions).
--------------------------------------------------------------------------------
11. Percent of Class Represented by Amount in Row (9) 9.166%
--------------------------------------------------------------------------------
12. Type of Reporting Person (See Instructions)  IN
--------------------------------------------------------------------------------



ITEM 1.

(a) Name of Issuer: eLoyalty Corporation

(b) Address of Issuer's Principal Executive Offices: 150 Field Drive, Suite 250,
Lake Forest, IL 60045


ITEM 2.

(a) Name of Person Filing: John A. Murphy, an individual, is managing member of
Alydar Capital, LLC and Alydar Partners, LLC, both Delaware limited liability
companies.  Alydar Capital, LLC is the general partner of Alysheba Fund, L.P.,
and Alysheba QP Fund, L.P.  Alydar Partners, LLC is the investment manager of
Alysheba Fund, L.P., Alysheba QP Fund, L.P., and Alysheba Fund Limited.(1)

(b) Address of Principal Business Office or, if none, Residence: 222 Berkeley
Street, 17[th] Floor, Boston, MA 02116

(c) Citizenship

(d) Title of Class of Securities: eLoyalty Corporation common stock

(e) CUSIP Number: 290151307

ITEM 3.   IF THIS STATEMENT IS FILED PURSUANT TO (section)(section)240.13D-1(B)
OR 240.13D-2(B) OR (C), CHECK WHETHER THE PERSON FILING IS A:  N/A

(a)  Broker or dealer registered under section 15 of the Act (15 U.S.C. 78o).
(b) Bank as defined in section 3(a)(6) of the Act (15 U.S.C. 78c).
(c) Insurance company as defined in section 3(a)(19) of the Act (15 U.S.C. 78c).
(d) Investment company registered under section 8 of the Investment Company Act
of 1940 (15 U.S.C 80a-8).
(e) An investment adviser in accordance with (section)240.13d-1(b)(1)(ii)(E);
(f) An employee benefit plan or endowment fund in accordance with
(section)240.13d-1(b)(1)(ii)(F);
(g) A parent holding company or control person in accordance with (section)
240.13d-1(b)(1)(ii)(G);
(h) A savings associations as defined in Section 3(b) of the Federal Deposit
Insurance Act (12 U.S.C. 1813);
(i) A church plan that is excluded from the definition of an investment company
under section 3(c)(14) of the Investment Company Act of 1940 (15 U.S.C. 80a-3);
(j) Group, in accordance with (section)240.13d-1(b)(1)(ii)(J).

________________

(1) John A. Murphy disclaims beneficial ownership of the securities.


ITEM 4.  OWNERSHIP.

Provide the following information regarding the aggregate number and percentage
of the class of securities of the issuer identified in Item 1.

(a) Amount beneficially owned:

Alydar Capital, LLC:  262,269 shares

Alydar Partners, LLC: 900,000 shares

Alysheba Fund, L.P.: 10,130 shares

Alysheba QP Fund, L.P.: 252,139 shares

Alysheba Fund Limited: 637,731 shares

John A. Murphy(2): 900,000 shares

(b) Percent of class: 9.166%

(c) Number of shares as to which the person has:

(i) Sole power to vote or to direct the vote. 0

(ii) Shared power to vote or to direct the vote. 900,000

(iii) Sole power to dispose or to direct the disposition of. 0

(iv) Shared power to dispose or to direct the disposition of.  900,000

ITEM 5.  OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS

If this statement is being filed to report the fact that as of the date hereof
the reporting person has ceased to be the beneficial owner of more than five
percent of the class of securities, check the following.   N/A

ITEM 6.  OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON.  N/A

ITEM 7.  IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED THE
SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY: N/A

ITEM 8.  IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP N/A

ITEM 9.  NOTICE OF DISSOLUTION OF GROUP N/A

_________________

(2) John A. Murphy disclaims beneficial ownership in the securities.




ITEM 10. CERTIFICATION

By signing below I certify that, to the best of my knowledge and belief, the
securities referred to above were not acquired and are not held for the purpose
of or with the effect of changing or influencing the control of the issuer of
the securities and were not acquired and are not held in connection with or as a
participant in any transaction having that purpose or effect.

SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.



 Date: February 15, 2008


 ALYDAR CAPITAL, LLC

 /s/ Paul J. Pitts
-----------------------------------------------------------------------------
 By: Paul J. Pitts, Attorney-in-Fact for John A. Murphy, its Managing Member


 ALYDAR PARTNERS, LLC
 /s/ Paul J. Pitts
-----------------------------------------------------------------------------
 By: Paul J. Pitts, Attorney-in-Fact for John A. Murphy, its Managing Member


 ALYSHEBA FUND, L.P.

 By:  ALYDAR CAPITAL, LLC, its General Partner
 /s/ Paul J. Pitts
-----------------------------------------------------------------------------
 By: Paul J. Pitts, Attorney-in-Fact for John A. Murphy, its Managing Member


 ALYSHEBA QP FUND, L.P.

 By:  ALYDAR CAPITAL, LLC, its General Partner
 /s/ Paul J. Pitts
-----------------------------------------------------------------------------
 By: Paul J. Pitts, Attorney-in-Fact for John A. Murphy, its Managing Member


 ALYSHEBA FUND LIMITED

 /s/ Paul J. Pitts
-----------------------------------------------------------------------------
 By: Paul J. Pitts, Attorney-in-Fact for John A. Murphy, its Director