This paper proposes wavelet packets for use in ultra wideband communications. The pulse shapes that are generated are quasi orthogonal and have almost identical time duration. After normalization, an M-ary signaling set can be constructed allowing higher data rate. Finally, the performance of such a system when multipath propagation occurs is investigated by computer simulations. In order to combat multipath fading, a Rake receiver using coherent channel estimation is designed. This channel estimation is carried out using adaptive algorithms such as least-mean square (LMS), normalized least-mean square (NLMS), or recursive least square (RLS) algorithms which adapt the received signal given a reference signal.