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The capacity and error probability of orthogonal space-time block codes (STBCs) are considered for pulse-amplitude modulation/phase shift keying/quadrature-amplitude modulation (PAM/PSK/QAM) in fading channels. The approach is based on an equivalent scalar additive white Gaussian noise channel with a channel gain proportional to the Frobenius norm of the matrix channel for the STBC. Using this effective channel, capacity and probability of error expressions are derived for PSK/PAM/QAM modulation with space-time block coding. Rayleigh-, Ricean-, and Nakagami-fading channels are considered. As an application, these results are extended to obtain the capacity and probability of error for a multiuser direct sequence code-division multiple-access system employing space-time block coding.