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Previous work has shown that the performance of a Space Time Spreading (STS) system using walsh codes with two transmit antennas at the Base Station (BS) is degraded in the presence of mutual interference from adjacent sectors in the same cell. In this paper we use Modified Walsh-Hadamard sequences exhibiting improved cross-correlation performance, which potentially mitigates the effects of MA1 (Multiple Access Interference). The presented study also looks at variation of sets of different Modified Walsh- Hadamard codes being used by the adjacent interferer, with a hundred randomly selected pairings being chosen, as well as the case where one set of alternate codes is used. It is shown using simulation that significant improvement of the order of 0.5-2 dB B possible using these sequences instead of the standard Walsh code previously proposed.