This document discusses the capacity of fading channels with channel side information. It presents the following key points: 1) When the channel is known at both the transmitter and receiver, the optimal strategy is water filling for power adaptation and variable rate coding to achieve capacity. 2) When the channel is only known at the receiver, having channel information at the transmitter does not provide any additional capacity benefit if fading is independent and identically distributed and transmit power is constant. 3) Suboptimal strategies like channel inversion aim to maintain a constant received signal-to-noise ratio but suffer capacity losses, especially under severe fading conditions.