An apparatus is disclosed to compensate for non-linear effects resulting from the transmitter, the receiver, and/or the communication channel in a communication system. A receiver of the communication system contains an image cancellation module that compensates for images generated during the modulation and/or demodulation process. The image cancellation module includes a fine carrier correction loop to correct for frequency offsets between the transmitter and receiver. The image cancellation module includes a coarse acquisition mode and a decision directed mode. The decision directed mode allows for a larger signal-to-noise ratio for the receiver when compared against the coarse acquisition mode.