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This paper proposes a new interference cancellation scheme which includes demodulation and modulation, and uses channel state information to enhance the cancellation performance. In the presence of strong additive noise, the available cancellers actually add more noise to the received signal than those that they removed (G.E.Bottomley et al., Dec. 25). However, the proposed canceller in no case generates additional symbol errors as compared to the case without cancellation. It yields better performance than the method presented in D. Kim and G.L. Stuber (Oct 1998), and improves the symbol error ratio for signal-to-noise ratios greater than 4.0 dB, instead of 6.5 dB in D. Kim and G.L. Stuber (Oct 1998).