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<title>Prepared and filed by St Ives Financial</title>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=4>UNITED STATES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=4>SECURITIES AND EXCHANGE COMMISSION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>WASHINGTON, D.C. 20549</font></B></p>


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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=4>FORM 8-K</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=2>CURRENT REPORT</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>Pursuant to Section 13 or 15(d) of the</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Securities Exchange Act of 1934</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font size=2><b>Date
  of Report (Date of Earliest Event Reported): September 21</b></font><b><font size=2>,
  2006</font></b></p>


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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><B><font SIZE=5>PEGASUS COMMUNICATIONS CORPORATION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Exact Name of Registrant as Specified in Charter)</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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    <td align=center valign=top  width="320"><b><font size=2>Delaware</font></b><br>
<font size=2>(State or Other Jurisdiction</font><br>
<font size=2>of Incorporation)</font><br></td>

    <td align=center valign=top  width="200"><b><font size=2>0-32383</font></b><br>
            <font size=2>(Commission File Number)</font><br>
      <font size=2>&nbsp;</font><br>
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    <td align=center valign=top   width="320"><b><font size=2>23-3070336</font></b><br>
            <font size=2>(IRS Employer</font><br>
<font size=2>Identification No.)</font><br></td>

    <td width="20">&nbsp;</td>
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    <td align=center valign=top  width="350"><b><font size=2>c/o
      Pegasus Communications Management Company</font></b><br>
<b><font size=2>225 City Line Avenue</font></b><br>
      <b><font size=2>Bala Cynwyd, Pennsylvania</font></b><br>
<font size=2>(Address of Principal Executive Offices)</font><br></td>

    <td align=center width="160">&nbsp;</td>

    <td align=center valign=top  width="350"><font size=2>&nbsp;</font><br>
      <font size=2>&nbsp;</font><br>
      <b><font size=2>19004</font></b><br>
<font size=2>(Zip Code)</font></td>

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<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0%;text-align:center;'><font size=2>Registrant&#146;s Telephone Number, Including Area Code: </font><b><font size=2>(610) 934-7000</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>Not Applicable</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Former Name or Former Address, if Changed Since Last Report)</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><font size=2>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (</font><i><font size=2>see </font></i><font size=2>General Instruction A.2. below):</font></p>



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<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><font face=Wingdings><img src="emptybox.gif" width="12" height="12"></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Written
  communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><font face=Wingdings><img src="emptybox.gif" width="12" height="12"></font><font size=2></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Soliciting
  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><font face=Wingdings><img src="emptybox.gif" width="12" height="12"></font><font size=2></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement
  communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><font face=Wingdings><img src="emptybox.gif" width="12" height="12"></font><font size=2></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement
  communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>




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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Item
          3.01.</font></b></p>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing </font></b></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><font size=2>(b) On September 22, 2006, the registrant notified NYSE Arca that as a result of the resignation of James J. McEntee, III, from the registrant&#146;s board of directors (see Item 5.02 below) the registrant no longer has at least three independent directors serving on its audit committee in accordance with NYSE Arca Equities Rule 5.3(k)(5). NYSE Arca is required to delist an issuer if an issuer fails to comply with Rule 5.3(k)(5) for six consecutive months. The registrant has informed NYSE Arca that in light of the registrant&#146;s announcement that it will be seeking stockholder approval to effect a one-for&#150;one-hundred reverse stock split for the purpose of ending its status as an SEC reporting company the registrant expects to delist its Class A common stock from NYSE Arca prior to the end of the six month period. If the reverse stock split were not effected, the registrant informed NYSE
Arca that it would anticipate adding to its board of directors an additional director who could serve on the registrant&#146;s audit committee in compliance with NYSE Arca&#146;s rules. </font></p>



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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Item
          5.02.</font></b></p>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers </font></b></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><font size=2>(b) In a letter dated September 21, 2006, James J. McEntee, III notified the registrant of his resignation effective immediately from his position as a director of the registrant. Mr.&nbsp;McEntee indicated in his letter of resignation that he did not resign as a result of any disagreement with the registrant&#146;s operations, policies or practices.</font></p>




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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><B><font SIZE=2>SIGNATURES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><font size=2>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.</font></p>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><B><font SIZE=2>PEGASUS COMMUNICATIONS CORPORATION</font></B></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>By&nbsp;</font></p>
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        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;'><br><br>
          <font size=2>/s/ Scott A. Blank</font></p>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;'><font size=2>Scott A. Blank,</font><br> <font size=2>Senior Vice President</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Date: September 25, 2006</font></p>



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Prepared and filed by St Ives Financial
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date
  of Report (Date of Earliest Event Reported): September 21
,
  2006
PEGASUS COMMUNICATIONS CORPORATION
(Exact Name of Registrant as Specified in Charter)
Delaware
(State or Other Jurisdiction
of Incorporation)
0-32383
(Commission File Number)
23-3070336
(IRS Employer
Identification No.)
c/o
      Pegasus Communications Management Company
225 City Line Avenue
Bala Cynwyd, Pennsylvania
(Address of Principal Executive Offices)
19004
(Zip Code)
Registrant's Telephone Number, Including Area Code:
(610) 934-7000
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (
see
General Instruction A.2. below):
Written
  communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting
  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement
  communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement
  communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item
          3.01.
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
(b) On September 22, 2006, the registrant notified NYSE Arca that as a result of the resignation of James J. McEntee, III, from the registrant's board of directors (see Item 5.02 below) the registrant no longer has at least three independent directors serving on its audit committee in accordance with NYSE Arca Equities Rule 5.3(k)(5). NYSE Arca is required to delist an issuer if an issuer fails to comply with Rule 5.3(k)(5) for six consecutive months. The registrant has informed NYSE Arca that in light of the registrant's announcement that it will be seeking stockholder approval to effect a one-for–one-hundred reverse stock split for the purpose of ending its status as an SEC reporting company the registrant expects to delist its Class A common stock from NYSE Arca prior to the end of the six month period. If the reverse stock split were not effected, the registrant informed NYSE
Arca that it would anticipate adding to its board of directors an additional director who could serve on the registrant's audit committee in compliance with NYSE Arca's rules.
Item
          5.02.
Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers
(b) In a letter dated September 21, 2006, James J. McEntee, III notified the registrant of his resignation effective immediately from his position as a director of the registrant. Mr. McEntee indicated in his letter of resignation that he did not resign as a result of any disagreement with the registrant's operations, policies or practices.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
PEGASUS COMMUNICATIONS CORPORATION
By
/s/ Scott A. Blank
Scott A. Blank,
Senior Vice President
Date: September 25, 2006
3