<p>Is there a way to use .NET reflection to capture the values of all parameters/local variables?</p>

Reflection is not used to capture information from the stack.  It reads the Assembly.
You might want to take a look at StackTrace
http://msdn.microsoft.com/en-us/library/system.diagnostics.stacktrace.aspx
Good article here:
http://www.codeproject.com/KB/trace/customtracelistener.aspx