Novel concepts and approaches for micromachined inertial sensors such are accelerometers and gyroscopes are investigated. A micromachined disk will be levitated by electrostatic forces which can sense acceleration along three axes. If the disk is spun about its main axis, it concurrently can sense angular rotation about the two axes. The aim of the project is to design a five-degree of freedom inertial sensor. Furthermore, intelligent interface and closed loop control strategies for inertial sensors are being investigated. The principle relies on an electro-mechanical sigma-delta modulator loop; this approach results in a digital sensor which can directly interface to a DSP and facilitates smart sensors.