The main goal of the project which this thesis is a part of, is to develop a systemthat can to track hand movements within a restricted area. The last few years hasseen the development of several different relatively cheap systems with the abilityto track position, velocity and heading of a device. These systems are usuallybased on ultrasound, electromagnetism or cameras with image recognitioncapabilities. The camera based systems can only function if there is a clear line ofsight to all of the cameras. Ultrasonic systems also need line of sight betweenreceiver and transmitter in order to achieve the wanted accuracy. The line-ofsightproblem can to some extent be solved by integrating inertial sensorcomponents into the system.