Vector Coding (VC) is a novel vector modulation scheme that partitions a SISO (Single-Input Single-Output) channel into orthogonal subchannels by singular value decomposition (SVD). Because the orthogonal transmissions enabled by VC cannot cope with inter block interference (IBI) that is inevitable in delay spread channels, this paper proposes an IBI cancelling demodulator which can remove IBI by an iterative technique. We also show that code elimination in which insignificant eigencodes with lowermost eigenvalues are intentionally removed from transmission vectors greatly reduces BER (Bit Error Rate). The VC which utilizes the IBI cancelling demodulator and code elimination to reduce BER is compared with the original VC in not only delay spread SISO channels but also delay spread MIMO (Multi-Input Multi-Output) channels while emphasis is placed on the MIMO cases. Simulation results show that, under a predetermined BER, the enhanced MIMO-VC can improve effective transmission rate than the natural extension of VC to delay spread MIMO channels.