Lacking capacity to be distinguished (7)
I believe the answer is:
notable
'be distinguished' is the definition.
(thesaurus)
'lacking capacity' is the wordplay.
'lacking' becomes 'no' (I've seen this in other clues).
'capacity' becomes 'table' (I can't explain this - if you can you should give a lot more credence to this answer).
'no'+'table'='NOTABLE'
'to' acts as a link.
(Other definitions for notable that I've seen before include "VIP" , "Remarkable, worthy of comment" , "Eminent" , "Great" , "Significant or distinguished" .)