This research is on a novel technique to increase the capacity of mobile cellular communications systems. It uses a small array of antennas to separate multiple co-channel signals, parametric modeling of the FM/PM signals impinging on the array, and makes use of both spatial and temporal information to separate the signals. Efficient estimation of the model parameters is achieved by using the recently developed Discrete Polynomial Transform (DPT) - a nonlinear transform for estimating the parameters of multi- component, polynomial phase signals. Phase I efforts include the development of DPT-based signal-selective array processing technique for separating 2 or 3 signals, and performance studies by analysis and computer simulation.