International Telemetering Conference Proceedings / October 21, 2002 / Town & Country Hotel and Conference Center, San Diego, California / The objective of the project is to continuously track a handheld device in an office, with centimeter accuracy in the three dimensions. A 3-D ray-tracing algorithm has been developed to simulate the impulse response of the indoor channel. The algorithm can evaluate the impulse response at multiple receiver locations. Non-linear optimization has been used to eliminate the need for multiple runs of simulation. The optimization program also significantly reduces the number of rays launched. The algorithm incorporates bandwidth effects on multipath resolution of the system.