A magnetic sensor system has been developed to measure the 3-D location and orientation of a rigid body relative to an array of magnetic dipole transmitters. A generalized solution to the measurement problem has been formulated, allowing the transmitter and receiver parameters (position, orientation, number, etc.) to be optimized for various applications. Additionally, the method of images has been used to mitigate the impact of metallic materials in close proximity to the sensor. The resulting system allows precise tracking of high-speed motion in confined metal environments. The sensor system was recently configured and tested as an abdomen displacement sensor for an automobile crash-test dummy. The test results indicate a positional accuracy of approximately 1 mm rms during 20 m/s motions. The dynamic test results also confirmed earlier covariance model predictions, which were used to optimize the sensor geometry. A covariance analysis was performed to evaluate the applicability of this magnetic position system for tracking a pilot's head motion inside an aircraft cockpit. Realistic design parameters indicate that a robust tracking system, consisting of lightweight pickup coils mounted on a pilot's helmet, and an array of transmitter coils distributed throughout a cockpit, is feasible. Recent test and covariance results are presented.