The equations of motion are derived, taking into account inviscid and viscous hydrodynamic coupling of small arbitrary motions of the cylinders. Solutions of the equations of motion yield the eigenfrequencies and modal shapes of the system. For sufficiently high flow velocities the system loses stability by divergence and flutter, similarly to a solitary cylinder in unbounded flow; however, the critical flow velocities are much lower, as proximity to other cylinders and to the channel wall severely destabilize the system.