I certainly wouldn't want to be the one to back against them to go all the way. After all City have beaten more premier league sides than QPR and Reading this season!

Also i heard that if City play Chelsea in the final and lose, then so long as Chelsea finish above 5th in the League City will have a place in Europe next season. Not 100% on this as its only what i heard last night but that would be brilliant for the club.

You are probably right tbh.

With the league cup it's only the winner that gets a European spot. The runner up in the FA Cup gets a Euro spot if the winners already have one

Well that's simple then:
Stuff Aston Villa away with a quick early goal, win the final at Wembely and bobs your uncle they are in Europe

If it was a chelsea - city final. Chelsea would give up their euro spot if the qualified for the champions league at the end of the season.

City can't get to Europe due to being in league 2, same as league 1 Only championship and Premier League teams get to go due to the teams they play.

Hope this helps.