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For pt.I see ibid., vol.50, no.7, p.1098-1109 (2002). We examine an infrared link composed of a multibeam transmitter and a direction-diversity receiver, employing code combining. The latter represents an added dimension to the conventional diversity concepts, which are limited to combining the individual received symbols. Rate-compatible punctured convolutional codes are used to encode intensity-modulated on-off keying (OOK) optical power, to create an adaptive environment for efficient utilization of channel spectral bandwidth, to provide a means for accurate channel estimation, and to maintain a guaranteed bit error rate (BER) performance at all receiver positions. It is shown that a BER not exceeding 10-9 with 99% probability can be achieved at bit rates up to a few hundreds of megabits per second, at very low transmitted power levels.