We consider a model for phase separation of a multi-component alloy with no
n-smooth free energy and a degenerate mobility matrix. In addition to showi
ng well-posedness and stability bounds for our approximation, we prove conv
ergence in one space dimension. Furthermore an iterative scheme for solving
the resulting nonlinear discrete system is analysed. We discuss also how o
ur approximation has to be modified in order to be applicable to a logarith
mic free energy. Finally numerical experiments with three components in one
and two space dimensions are presented.