The BBC's Denis Murray reports from the inquiry

The families of the 14 people killed by soldiers in the city, 26 years ago, have said they hope it will discover the full truth of what happened.

Watch Andy Tighe's report on the "potentially controversial issue of immunity"

The inquiry will consider whether to offer anonymity and immunity from prosecution for those willing to testify.

Several relatives of those killed in 1972 are still calling for those responsible to be prosecuted.

Some relatives have also threatened to withdraw from the inquiry if they are not offered enough legal representation.

Bloody Sunday, 13 January 1972, was captured on television

"There has been a very marked deterioration in our confidence because of this attempt to reduce the legal team," Don Mullan, a spokesman for the Bloody Sunday families, told BBC Radio 4's Today programme.

Lord Saville, who is heading the inquiry, is known to want to restrict the numbers of lawyers involved to keep costs from spiralling out of control.

However, the relatives say they must have substantial representation to equal the resources of the British Army and Ministry of Defence.

Don Mullan, representing victims' families, wants to tackle the army's "absolute lies"

The original inquiry into the events of 1972 by Lord Widgery found that soldiers from the Parachute Regiment had been shot at first and that the people killed had been marching illegally.

That report, which took place soon after the killings, has been condemned for being inconsistent and lacking the testimony of eyewitnesses.

Relatives of those killed, many of them were never called to give evidence, called it a whitewash.

The naming of the new hearing - the Bloody Sunday Inquiry - is seen as significant by many.

Victim's brother Michael McKinney: Families are still sceptical

The tribunal, which will not be hearing evidence until February 1999, expects to hear testimony from soldiers who have not spoken out before.

It has already received 30,000 pages of documentation including material from the Ministry of Defence. It also has more than 1,000 photographs and video provided by the BBC and other broadcasters.

The original inquiry had a map of the events - this one is considering creating a 3D computer-generated model.