This is the third in a series of technical notes that describe the development of the capacitance imaging system (CIS). The CIS was designed at the Morgantown Energy Technology Center (METC) as a tool for use in fluidized-bed research. This report briefly reviews the electronic system used for data accumulation and manipulation. It also describes the data processing methods that have been developed for 3-dimensional, fluidized-bed density measurement and display for the first-generation, 16-electrode, 49-pixel, 4-level CIS. The review outlines the basic structure of the first-generation CIS as it applies to the 32-electrode, 193-pixel, 4-level system. Emphasis is placed upon the modification in the electronic system needed to best utilize the improved resolution capabilities offered by the 32-electrode, second-generation system. The report also describes the changes and advances made in data processing made necessary by the increase from 104 to 400 in the number of interelectrode displacement current measurements. The larger number of measurements allow for the possibility of greater accuracy of density determination to take advantage of the higher resolution available with smaller pixel definition.