Quantum coherence and interference effects in driven three-level atomic systems have potential applications in the generation of short-wavelength coherent radiation, laser cooling of atoms and sensitive measurements of magnetic fields. Such systems can also exhibit counter-intuitive phenomena such as optical gain without the usual requirement for population inversion. These effects are studied experimentally in a sample of laser-cooled Rb87 atoms confined in a magneto-optic trap. Because the atoms are cold, complications due to Doppler broadening can be avoided anbd a simpler comparison of experiment with theory is possible. We find the absorption of a weak probe field tuned to one transition of a V-type three-level atom is inhibited in the presence of a strong drive field on the other transition. Gain is also observed due to Raman transitions between the atomic ground state hyperfine levels. Complicating issues in the experiment such as optical forces on the atoms, optical pumping and lineshape-broadening mechanisms will be discussed.