In this paper, we propose a joint diversity algorithm for error-rate minimization in multi-user spatial multiplexing (SM) systems with block diagonalization (BD)-precoding. The proposed algorithm adapts or selects the user set, transmit antenna subset, and the number of streams by an exhaustive search over the available resources. The proposed algorithm makes use of the multi-user diversity (MUD) and the spatial diversity gains as well as the array gain through selecting the best set. Exhaustive search, however, imposes a heavy burden in terms of computational complexity which exponentially increases with the size of the total number of users, streams, and transmit antennas. For complexity reduction, we propose two suboptimal algorithms which reduce the search space by first selecting the best user or by both selecting the best user and fixing the number of streams. Simulation results show that the proposed algorithms improve error probability over the conventional algorithm due to their diversity improvement and the signal-to-noise ratio (SNR) gains over the conventional algorithm. We also show that the suboptimal algorithms significantly reduce the computational complexity over exhaustive search with low-SNR loss.