The first word in quotations does NOT always need to be capitalized. If you are quoting what someone said, it should be capitalized, and so should the title of a book, movie, song, etc., and if the first word in quotations is the first word of a sentence. If you are just quoting a small part of a phrase/song/something that has already been written by someone else, it does not have to be capitalized.
Even though there isn't a passage, the things you would be looking for in third person omniscient is that the narrator has the facts plus ALL character's thoughts and feelings.
