Recently short word-length (normally 1 bit or bits) processing has become a promising technique. However, there are unresolved issues in sigma-delta modulation, which is the basis for 1b/2b systems. These issues hindered the full adoption of single-bit techniues in industry. Among these problems is the stability of high-order modulators and the limit cycle behaviour. More importantly, there is no adaptive LMS structure of any kind in 1b/2b domain. The challenge in this problem is the harsh quantization that prevents straightforward LMS application. In this thesis, the focus has been made on three axes: designing new single-bit DSP applications, proposing novel approaches for stability analysis, and tacking the unresolved problems of 1b/2b adaptive filtering. Two structures for 1b digital comb filtering are proposed. A ternary DC blocker structure is also presented and performance is tested. We also proposed a single-bit multiplierless DC-blocking structure. The s tability of a single-bit high-order signma-delta modulator is studied under dc inputs. A new approach for stability analysis is proposed based on analogy with PLL analysis. Finally we succeeded in designing 1b/2b Wiener-like filtering and introduced (for the first time) three 1b/2b adaptive schemes.