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The performance of a CDMA-based packet transmission system is analyzed and simulated in a wireless infrared channel. The indoor wireless infrared channel is modeled as a non-directed diffuse link. Pulse position modulation (PPM) is used as a modulation scheme. The system performance is evaluated in terms of packet throughput and delay. As a forward error correction scheme, a turbo code is employed. From the simulation results, it is shown that the turbo coding is very effective in improving the packet-delay characteristics of the CDMA-based packet transmission system. We can find an application in the design of CDMA-based infrared indoor wireless LANs.