This report describes a novel method to perform acoustic echo cancelling with microphone arrays. The method employs a digital self-calibrating microphone system. The on-site calibration process is a simple indirect calibration which adapts in each special case to the environment and electronic equipment. The method also continuously takes into account environmental disturbances such as car engine noise and fan noise. The method is primarily aimed at handsfree mobile telephones, by suppressing the handsfree loudspeaker and car noise simultaneously. The report also contains an extensive evaluation in a car.