Multiple antennas at the transmitter and the receiver have the potential to either increase the data rate through spatial multiplexing or enhance the quality of transmission through exploitation of diversity. In this paper, we address the problem of multi-user multiplexing using spatial diversity techniques so that a base station could serve multiple users in the same frequency band making huge saving in bandwidth utilization. In particular, we have proposed various techniques to improve substantially the performance of a recently proposed signal-to-leakage maximization based algorithm. Our simulation results reveal a lower error floor and more than 10 dB improvement in BER performance.