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In this paper, a joint interference cancellation (IC) and decoding scheme is investigated for a multiple input multiple output (MIMO) space-time block coded orthogonal frequency division multiplexing (OFDM) based WLAN systems over frequency selective fading channels. A multiuser environment with K synchronous co-channel users, each equipped with two transmit antennas is considered. Assuming that the receiver is equipped with m (≥K) receive antennas, signals from K users are detected using minimum mean squared error (MMSE) interference cancellation followed by maximum likelihood (ML) decoding. It is shown that the joint IC and decoding scheme could be used to increase the system capacity (in terms of number of users or data rate) linearly with the number of co-channel users while maintaining the error rate performance. A theoretical error probability bound for the MMSE-IC scheme is derived.