This award will support collaborative research between Dr. Carlton Caves of the University of Southern California and Dr. Gerald J. Milburn of the Department of Physics, University of Queensland, Australia. An overall objective of this research is to advance characterization of photons. Characterization of photons are a partial function of the properties -- which determine the optical frequency mode -- of particular detectors. Development of a theory of continual optical-frequency measurements is therefore necessary to advance characterization of photons. Without such theory, it becomes difficult to find quantum limitations to high- precision optical detection of photons. The specific objective of this project is to develop a theoretical framework for describing and analyzing continual quantum-limited detection of optical fields. The project continues collaboration of U.S. and Australian researchers who have made significant contributions to development of this theoretical framework. Expectations are that the project will improve the framework; contribute to the foundations of quantum physics; and, in addition, lead to advances in applications in modern optics and optical communications theory.