The original ITER In-Vessel Viewing System (IVVS) prototype (Proc. of the 20th SOFT, vol. 2 (1998) 1051), which demonstrates the feasibility of linear fibre arrays for ITER in-vessel viewing, has been modified. In order to reduce the viewing time and to improve the image quality the beam dispersing mirrors was replaced by a diffractive optics element (DOE), which enhanced the laser illumination considerably. The performance of the system was tested using various target surfaces: the results obtained clearly indicate its adequacy for in-vessel viewing. Mechanical damage on smooth metal surfaces (scratches etc.) can be easily distinguished and the viewing resolution at a distance of 2 m is better than 1 mm. The IVVS has been re-designed to be compatible with the new ITER-FEAT. A conceptual study which covers all the functions and subsystems required for viewing has been completed. These results will be used to further modify the prototype: items to be tested include horizontal probe operation and laser illumination with an optical fibre.