We consider some solution methods for large sparse linear systems of equati
ons which arise from second-order elliptic finite element problems defined
on composite meshes. Historically these methods were called FAC and AFAC me
thods. Optimal bounds of the condition number for certain AFAC iterative op
erator are established by proving a strengthened Cauchy-Schwarz inequality
using an interpolation theorem for Hilbert scales. This work completes earl
ier work by Dryja and Widlund. We also apply an extension theorem for finit
e element functions to get a weaker bound under some more general assumptio
ns. The optimality of the FAC methods, with exact solvers or spectrally equ
ivalent inexact solvers being used, is also proved by using similar techniq
ues and some ideas from multigrid theory.