In this paper we analyze the performance of single stream and multi-stream spatial multiplexing (SM) systems employing opportunistic scheduling in the presence of interference. In the proposed downlink framework, every active user reports the post-processing signal-to-interference-plus-noise-power-ratio (post-SINR) or the receiver specific mutual information (MI) to its own transmitter using a feedback channel. The combination of scheduling and multi-antenna receiver processing leads to substantial interference suppression gain. Specifically, we show that opportunistic scheduling exploits spatial interference alignment (SIA) property inherent to a multi-user system for effective interference mitigation. We obtain bounds for the outage probability and the sum outage capacity for single stream and multi stream SM employing real or complex encoding for a symmetric interference channel model. The techniques considered in this paper are optimal in different operating regimes. We show that the sum outage capacity can be maximized by reducing the SM rate to a value less than the maximum allowed value. The optimum SM rate depends on the number of interferers and the number of available active users. In particular, we show that the generalized multi-user SM (MU SM) method employing real-valued encoding provides a performance that is either comparable, or significantly higher than that of MU SM employing complex encoding. A combination of analysis and simulation is used to describe the trade-off between the multiplexing rate and sum outage capacity for different antenna configurations.