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This paper presents the algorithms and corresponding hardware architectures developed in the context of the nexgen miliwave project, that compose the digital baseband processor of a 60GHz point-to-point link. The nexgen baseband processor provides all basic functionality required from a digital transmitter and receiver, including filtering, synchronization, equalization, and error correction. The techniques selected are capable of compensating impairments due to millimeter-wave front-end and yet support a throughput rate of more than one Gbp, with moderate hardware cost. As the nexgen link targets backhauling applications, a particularly low bit error rate specification of 10-12 has been adopted. Meeting the particular specification, as well as performance and complexity constraints, requires the adoption of sophisticated FEC techniques. Furthermore, extensive verification tasks need to be adopted which include hardware prototyping.