Abstract: Method and apparatus for non-invasive testing of digital communications systems. Amplitude measurements are made for multiple frequencies of a multi-frequency communication system, converted to the time domain. An adaptive filter output is matched to the time domain representation to characterize the channel. Impedance mismatches may be precisely located using this technique. An error signal representing a difference between a signal transmitted through the channel and a received signal is estimated and analyzed. The error signal is separated into components corresponding to contributions by wide band noise, residual phase modulation, and residual amplitude modulation. Identification and removal of narrow-band interferers may occur prior to this separation. Bit error rate and system margin computations employ a Monte Carlo simulation of the various error sources. This provides a well refined estimate of bit error rate and system margin.