The basis of this paper is the evaluation of an integrated multi-channel Fourier-transform (FT) spectrometer based on a multi-channel wedge Fabry-Perot interferometer and a one-dimensional lateral effect position sensitive detector (PSD). The use of a PSD for an interferogram readout allows for a simple scanning mechanism with no requirement for any position reference. The use of a wedge-shaped interferometer makes it possible to integrate it directly onto the PSD surface, thus producing a very compact spectrometer. The capabilities of the spectrometer are demonstrated by absorption spectral measurements using a reference sample. In addition, spectral measurements on 532 nm DPSS and 632.8 nm He-Ne lasers are presented. The resolution of the spectrometer is approximately 5 nm. The evaluated spectrometer set-up can be used in applications where compact and low cost spectrometers are required, such as in process control and in education. Further, it is shown that there are deteriorations in very high accuracy position measurements, which are caused by changes in incident light intensity. A model describing the above-mentioned nonlinearities was developed based on analysing the equivalent circuit for PSDs and parameters such as leakage current and serial resistance. Additionally, a method is proposed to assist in the reduction of the nonlinearity caused by this effect.