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Multiple-input-multiple-output (MIMO) systems provide a very promising means to increase the spectral efficiency for wireless systems. By using orthogonal frequency-division multiplexing (OFDM), wideband transmission can be achieved over frequency-selective fading radio channels. First, in this paper, we introduce an improved vertical Bell Labs layered space-time (V-BLAST) receiver which takes the decision errors into account. Second, we propose an iterative detection and decoding (IDD) scheme for coded layered space-time architectures in MIMO-OFDM systems. For the iterative process, a low-complexity demapper is developed by making use of both nonlinear interference cancellation and linear minimum mean-square error filtering. Also, a simple cancellation method based on hard decision is presented to reduce the overall complexity. Simulation results demonstrate that the proposed IDD scheme combined with the improved V-BLAST performs almost as well as the optimal turbo-MIMO approach, while providing tremendous savings in computational complexity.