A multiuser downlink multiple-input multiple-output (MIMO) system with limited channel information feedback includes an error-free channel vector quantization scheme. Each user has multiple antennas, and the base station includes a matching number of antennas. Each MIMO channel is measured at the terminus end of a corresponding user, and used to obtain the channel state information at the receiver (CSIR). A few data bits of CSIR information are feed back to the base station through the limited feedback channels. The base station collects all these CSIR feedback data bits into a CSI at the transmitter (CSIT). The CSIT is used to determine which users are served, and how to configure a corresponding multi-user precoder. The user data channels will later all be transmitted through such precoder. A codebook of channel quantization vectors is pre-defined and distributed amongst the base station and all the users.