You could also try an iterative development model as an improvement over the basic waterfall model. Its basically a whole bunch of little waterfalls that incorporate their own requirements - design - build - test iterations before a client review that is fed into the next iteration.
You start by identifying the high risk issues that are likely to cause problems and tackle these areas first. Any severe problems can be dealt with before too much money has been spent on the project. Reporting on successfully testing the difficult parts of the project will build confidence with the project manager and the client because that's what they worry about.
I second tomazos' view that a prototype (even of the smoke and mirrors variety) is a great way to start the design process. Reviewing the current product (demos, models etc.) with the client at each review stage allows them to better visualise the deliverables and provide better requirements which are fed into the next iteration.
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