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A low-cost INS/GPS vehicle navigation system is described. Error models for the inertial sensors are generated and included in a Kalman filter for estimating the position and orientation of a vehicle. A piezoelectric gyroscope has been evaluated for the orientation estimation. Performance of the gyroscope with error compensation is compared to that without error model introduced. Similar error model has been developed for a MEMS accelerometer. Results from tests of the INS are compared with the results obtained from the GPS and the integration of INS and GPS, low-cost INS/GPS can provide valuable orientation and position information particularly for the vehicles.