A new power spectrum binarization technique is introduced that eases experimental implementation while significantly improving binary joint transform correlation performance. Impacts of fundamental design parameters on correlator performance have been evaluated using
computer simulations. Realistic images including multiple objects in challenging backgrounds were used to characterize the effects of parameter variations such as threshold levels and low-frequency blocks. The design aspects emphasized were those contributing to ease of experimental implementations, including practical dynamic range limitations and achievable threshold levels. Experimental results using the optimization techniques developed with simulations are given.