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The aim of this work is dedicated to creating smart environments and assistance to enable elderly to live a longer and more independent life at home. One of the essential services required to maximize the intelligence of a smart environment is a low cost indoor precision localization system. This paper presents our hands-on experience based on our first phase work to build up a smart home infrastructure for the elderly. We review location tracking technology and describe the rationale behind our choice among the emerging wireless sensors technologies. Node localization is required to report the origin of events, to assist group querying of sensors, to facilitate routing and to answer questions on the network coverage. Furthermore, one of the fundamental challenges in a wireless sensor network is mobile node localization. In this work, we locate in real-time a person in an indoor environment rich in multipaths by taking into account the effects of the environment. Future research directions and challenges for improving node localization in wireless sensor networks are also discussed.