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The IEEE 802.16 family of standards for nomadic wireless metropolitan area networks adopts orthogonal frequency-division multiple-access as an air interface. In these systems, timing errors between the uplink signals and the base station time reference give rise to interchannel interference as well as multiple-access interference with an ensuing degradation of the error-rate performance. To mitigate this problem, users that intend to establish a communication link go through a synchronization procedure called Initial Ranging (IR) by which uplink signals can arrive at the base station synchronously and with approximately the same power level. In this work, a novel IR scheme compliant with the IEEE 802.16 specifications is presented. In contrast to existing methods, our solution operates on the basis of a generalized likelihood ratio test (GLRT) and provides improved timing and power estimates by properly taking into account the channel correlation across the signal bandwidth. In order to increase the resilience to multiple access interference, the GLRT approach is also exploited to derive a two-stage interference cancellation scheme. Numerical simulations and theoretical analysis are used to demonstrate the effectiveness of the proposed solutions and to make comparisons with existing alternatives.