The report presents the results of an initial investigation into the problem of obtaining a true azimuth from noisy gyrocompass data. The main areas in the report present a precise problem statement and a possible mathematical method for the problem solution. The method presented is basically an adaptive filter which in addition to minimizing the effect of measurement noise is also able to account for errors in modeling the gyrocompass problem. Final numerical results of this system will be presented in a forthcoming report. (Author).

Project 7904. Also available as AD746478.