The bit error rate (BER) performance of the zero-forcing (ZF) receiver over transmit-correlated flat Ricean fading channels is investigated. In particular, for a multiple-input multiple-output (MIMO) channel with M transmit and N receive antennas, an approximation for the average BER of each substream is derived. Then the system performance in receive-correlated flat Ricean fading channels is addressed. In this case, it is shown that the performance, when N=M, is the same as that of transmit-correlated flat Ricean fading channels. A closed-form expression for the optimum transmit correlation coefficient, which achieves the maximum capacity (i.e. uncorrelated case), is also derived. As a result, a significant capacity gain is achieved by exploiting the knowledge of the Ricean channel. Extensive simulations are presented to validate and demonstrate the performance gain with different system parameters.