We propose and verify through computer simulations the use of a precoding technique to eliminate the nonlinear distortions in an M-QAM channel, which is transported along with multiple AM-VSB channels by a laser diode. We show that the precoding technique can completely remove the clippinginduced bit-error-rate (BER) floor at a cost of a 3-dB signalto-noise ratio reduction.Index Terms-Hybrid AM-VSB/M -QAM, precoding, subcarrier-multiplexed systems.