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In this paper, the Space Polarization Shift Keying (SPSK) system, which is an extended version of Space Shift Keying (SSK) and includes both space and polarization dimensions with dual polarized antennas, is studied. The capacity and error probability analysis of SPSK for different polarization configurations are dealt with over the Rayleigh fading channel with a rich scattering environment. The analysis conducted shows that the SPSK with a dual polarized antenna (DP) offers better results than SPSK with a single orthogonal polarized antenna SPSK(SP), under non-LOS conditions. SPSK(DP) outperforms SSK by 4.2 dB over the correlated Rayleigh fading channel at 3 bits/s/Hz.