The wireless communication channel between vehicular nodes in an ad-hoc network was assessed in a comprehensive measurement and modeling effort. Nodes were equipped with roof mounted azimuthally omnidirectional antennas, and measurements were taken at both short (line-of-sight) and long ranges, at a center frequency of 2.5 GHz. The median MIMO capacity with 8 transmitters and 10 receivers (8 times10) was found to be about five times the corresponding 1times1 SISO capacity, and three times the corresponding 1times10 SIMO capacity. Wideband soundings of such channels were conducted, where the median rms delay spread was found to be 0.6 mus. Measurements, spatial correlation scales, an empirical model of pathloss, and cross- polarization properties of peer-to-peer channels in a rural area are reported.