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This paper describes a nonlinear acoustic echo cancellation algorithm, mainly focused on loudspeaker distortions. The proposed system is composed of two distinct modules organized in a cascaded structure: a nonlinear module based on polynomial Volterra filters models the loudspeaker, and a second module of standard linear filtering identifies the impulse response of the acoustic path. The tracking of the overall system model is achieved by a modified normalized-least mean square algorithm for which equations are derived. Stability conditions are given, and particular attention is placed on the transient behavior of cascaded filters. Finally, results of real data recorded with Alcatel GSM material are presented.