Oak, I wear a bigger size in the Handful than normal. I got a small rather than an extra small at first. I always wear the pads, I like the way it looks and it's not too tight. When I bought the second round, I got the extra small and I wish I didn't. It's not hard to put on, but it chafes a bit. From your description, I would say it is encapsulated as it looks like a regular bra, not the tank top type of sports bra. There's definitely separate cups.
I am just thankful that there is finally a sports bra in small sizes that isn't just a lacy little thing, like the Title 9 bras. I don't need that much support, I just want to look decent and not have the headlights show. Based on what I've seen advertised and read on threads like these, I feel thankful sports bras aren't an issue for me!