In this paper we use a set of Modulated Discrete Prolate Spheroidal Sequences (MDPSS) to represent a bandlimited channel in the scenario with scattering from one or more clusters which can be used in both Vehicle to Infrastructure (V2I) or Vehicle to Vehicle (V2V) communication cases. Then we evaluate performance of 2 × 1 Space-Time Transmit Diversity (STTD) system with Alamouti coding and imperfect channel estimation at the receiver. We consider examples of different scattering environments which represent vehicular communication in urban area, derive expressions for autocorrelation function of channel gains and verify it by simulation. Scattering effect on estimation quality of the system is examined in terms of Minimum Mean Square Error (MMSE) and Bit Error Rate (BER).