A multi-user data transmission/reception system includes at least one mobile station to receive a pilot signal, select a preferred mode, a preceding matrix index, a beamforming vector index, and a quantized capacity level using the pilot signal, and transmit the preferred mode, the preceding matrix index, the beamforming vector index, and the quantized capacity level; and a base station to transmit the pilot signal to the at least one mobile station, receive the preferred mode, the preceding matrix index, the beamforming vector index, and the quantized capacity level from the at least one mobile station, and determine an optimal mode, an optimal precoding matrix, and an optimal beamforming vector using a lookup table storing an expected capacity for each capacity quantization interval.