A new diagnosis algorithm for square grids is introduced. The algorithm alw
ays provides correct diagnosis if the number of faulty processors is below
T, a bound with T is an element of Theta (n(2/3)), which was derived by wor
st-case analysis. A more effective tool to validate the diagnosis correctne
ss is the syndrome dependent bound T-sigma, with T-sigma greater than or eq
ual to T, asserted by the diagnosis algorithm itself for every given diagno
sis experiment. Simulation studies provided evidence that the diagnosis is
complete or almost complete if the number of faults is below T. The fractio
n of units which cannot be identified as either faulty or nonfaulty remains
relatively small as long as the number of faults is below n/3 and, as long
as the number of faults is below n/2, the diagnosis is correct with high p
robability.