I want to build a list containing every possible permutation of capitalization of a word. so it would be
List permutate(string word)
{
List
Keep in mind that while the accepted answer is the most straightforward way of capitalizing an arbitrary letter, if you are going to change the capitalization repeatedly on the same set of letters (e.g., 32 times in "happy" and growing exponentially for longer words), it will be more efficient to turn the string into a char[], set the appropriate letter(s), and construct the string from the array.