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

                                  SCHEDULE 13G

                    Under the Securities Exchange Act of 1934


                         (Amendment No.____________)(*)


                                  Heelys, Inc.
- --------------------------------------------------------------------------------
                                (Name of Issuer)


                         Common stock, $0.001 par value
- --------------------------------------------------------------------------------
                         (Title of Class of Securities)


                                    42279M107
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                                 (CUSIP Number)

                                December 8, 2006
- --------------------------------------------------------------------------------
             (Date of Event Which Requires Filing of this Statement)


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

          [X] Rule 13d-1(b)

          [_] 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. 42279M107

- --------------------------------------------------------------------------------
1.   NAME OF REPORTING PERSONS.
     I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)

                    Capital Southwest Corporation     75-1072796

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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)

(a)
   -----------------------------------------------------------------------------
(b)
   -----------------------------------------------------------------------------
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3. SEC USE ONLY

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4. CITIZENSHIP OR PLACE OF ORGANIZATION

                    United States
- --------------------------------------------------------------------------------
  NUMBER OF    5.   SOLE VOTING POWER

   SHARES           -0-
               -----------------------------------------------------------------
BENEFICIALLY   6.   SHARED VOTING POWER

  OWNED BY          9,317,310
               -----------------------------------------------------------------
    EACH       7.   SOLE DISPOSITIVE POWER

  REPORTING         -0-
               -----------------------------------------------------------------
   PERSON      8.   SHARED DISPOSITIVE POWER

    WITH            9,317,310
- --------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

                    9,317,310
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10.  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (See
     Instructions) [_]
- --------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

                    31.8%
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12. TYPE OF REPORTING PERSON (See Instructions)

                    IV
- --------------------------------------------------------------------------------



CUSIP No. 42279M107

Item 1(a).  Name of Issuer:
                    Heelys, Inc.
- --------------------------------------------------------------------------------
Item 1(b).  Address of Issuer's Principal Executive Offices:
                    3200 Belmeade, Suite 100
                    Carrollton, TX  75006
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Item 2(a).  Name of Person Filing:
                    Capital Southwest Corporation
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Item 2(b).  Address of Principal Business Office, or if none, Residence:
                    12900 Preston Road, Suite 700
                    Dallas, TX  75230
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Item 2(c).  Citizenship:
                    United States
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Item 2(d).  Title of Class of Securities:
                    Common Stock, $0.001 par value
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Item 2(e).  CUSIP Number:
                    42279M107
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Item 3. If This Statement is Filed Pursuant to ss.ss.240.13d-1(b), or 240.13d-
2(b) or (c), Check Whether the Person Filing is 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 ss.240.13d-1(b)(1)(ii)(E).

     (f) [_] An employee  benefit  plan or  endowment  fund in  accordance  with
             ss.240.13d-1(b)(1)(ii)(F).

     (g) [_] A parent  holding  company or  control  person in  accordance  with
             ss.240.13d-1(b)(1)(ii)(G).

     (h) [_] A savings  association  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 ss.240.13d-1(b)(1)(ii)(J).



CUSIP No. 42279M107
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Item 4.  Ownership.

     (a)  Amount beneficially owned: 9,317,310
          ----------------------------------------------------------------------
     (b)  Percent of class: 31.8%
          ----------------------------------------------------------------------
     (c)  Number of shares as to which such person has:

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

       (ii)  Shared power to vote or to direct the vote                9,317,310
                                                                       ---------

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

       (iv)  Shared power to dispose or to direct the disposition of   9,317,310
                                                                       ---------
- --------------------------------------------------------------------------------
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 [ ].
- --------------------------------------------------------------------------------
Item 6.  Ownership of More than Five Percent on Behalf of Another Person.

          Capital Southwest Venture  Corporation,  a wholly-owned  subsidiary of
          the Reporting Person, is the owner of, and has the right to receive or
          the power to direct the receipt of  dividends  from,  or the  proceeds
          from the sale of 9,317,310 shares of common stock.
- --------------------------------------------------------------------------------
Item 7.  Identification and Classification of the Subsidiary Which Acquired the
         Security Being Reported on by the Parent Holding Company.

                    Not Applicable
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Item 8.  Identification and Classification of Members of the Group.

                    Not Applicable
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Item 9.  Notice of Dissolution of Group.

                    Not Applicable
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Item 10. Certification.

          By  signing  below I certify  that,  to the best of my  knowledge  and
          belief, the securities referred to above were acquired and are held in
          the ordinary course of business and were not acquired and 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.




                                          February 1, 2007
                                        ----------------------------------------
                                          (Date)


                                          /s/ William R. Thomas
                                        ----------------------------------------
                                          (Signature)


                                          President
                                        ----------------------------------------
                                          (Name/Title)