  We present a general model for quantum channels with memory, and show that it
is sufficiently general to encompass all causal automata: any quantum process
in which outputs up to some time t do not depend on inputs at times t' > t can
be decomposed into a concatenated memory channel. We then examine and present
different physical setups in which channels with memory may be operated for the
transfer of (private) classical and quantum information. These include setups
in which either the receiver or a malicious third party have control of the
initializing memory. We introduce classical and quantum channel capacities for
these settings, and give several examples to show that they may or may not
coincide. Entropic upper bounds on the various channel capacities are given.
For forgetful quantum channels, in which the effect of the initializing memory
dies out as time increases, coding theorems are presented to show that these
bounds may be saturated. Forgetful quantum channels are shown to be open and
dense in the set of quantum memory channels.
