The thesis investigates the effects of sensors coating (internal shielding) of the Space Periodic Capacitance Transducer (SPCT) system on its operational features and efficiency. The placement of the coating layer on the SPCT surface is proposed in this work to protect the conducting electrodes from damage caused by particle abrasion. The computational model of the unshielded SPCT based on Laplace's equation for electrostatic fields was modified in this work to incorporate the coating layer. This model was solved using the finite difference method, and the successive over-relaxation (SOR) technique .This work describes the full investigation of the effects that electrodes coating cause through the investigation of the potential field distribution, the output signal strength and harmonic content, output signal distortion, field intensity distribution, velocity measurement accuracy, flux efficiency, and other evaluation criteria. New parameters are introduced which have not been studied before. A modified flux efficiency with a field intensity vector tracking algorithm is also introduced. It was found from the numerical solution of the SPCT model that the most important effects that the addition of coating leads to are increase in the output signal power, cancellation of all distortion in the output signal and smoother sinusoidal output signals are insured, cancellation of all signals in which the harmonic content is larger than the fundamental component but with some increase in harmonic content in other signals, avoiding the bad velocity measurement due to the low particle height signals but with a small decrease in the velocity measurement accuracy for other signals, smoother channel electric field intensity distribution, and increase in flux efficiency. Visual Basic programs and MATLAB subroutines were implemented to investigate these effects on a Pentium PC with an Intel-586 processor. The Successive Over Relaxation (SOR) algorithm was applied to a mesh with 110x32 nodes and can be extended to a larger number of nodes.