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Wireless communication systems have many potential benefits for industrial applications, one of them being the support for mobile devices. In such scenarios, determining the position of a wireless node is an essential task which should be accomplished directly and reliably by the communication system. Two popular approaches are the received signal strength (RSS) and time-measurement methods based on signal propagation delays. In this paper, we investigate the attainable localization accuracy for both approaches based on a WLAN setup. Theory and experiments with different setups show that the time-of-flight method is far better than RSS, however at the expense of a higher implementation effort.