This paper summarizes previous work on tool position estimation on industrial manipulators, and emphasize the problems that must be taken care of in order to get a satisfied result. The acceleration of the robot tool, measured by an accelerometer, together with measurements of motor angles are used. The states are estimated with an extended Kalman filter. A method for tuning the covariance matrices for the noise, used in the observer, is suggested. The work has been focused on a robot with two degrees of freedom.