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In indoor wireless networks, the propagation conditions are hardly predictable due to the dynamic nature of the RSSI, and consequently the parameters of the propagation model may change. In this paper, we present an automatic virtual calibration method of the propagation model that does not require human intervention; therefore, can be periodically performed, following the wireless channel conditions. We also propose a novel RSSI\u2010based localization algorithm that selects the RSSI values according to their strength, and uses a calibrated propagation model to transform these values into distances, in order to estimate the position of the mobile. 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