Using the basic concepts of widely linear filtering, we introduce a new structure of equalization, called I-Q equalization for PAM/QAM signals. The proposed receivers exploit the existing correlations between the in-phase (I) and quadrature (Q) components of the received signal for reducing the inter symbol interference (ISI) and co-channel interference (CCI) effects. In this type of interference cancelation (IC) scheme, I-Q receivers are shown to provide significant performance benefit especially in case of "non-circular" interference. To reap the IC benefits, we present a low complex I-Q MMSE-DFE detection framework for PAM and QAM systems. In both cases, the I-Q receiver is shown to suppress PAM modulated interference. Unlike conventional receivers which require either excess bandwidth or multiple antennas for IC, I-Q receivers are able to suppress interference using a single receiver antenna. © 2005 IEEE.