The estimation and control of large flexible space structures pose significant new control technology problems. One major problem area is the closed-loop stability of a structure that has been modeled with truncated modal dynamics. Stability problems arise due to the control design process beginning with a deficient model. This work provides the necessary conditions for the optimal estimation of infinite dimensional (partial-differential equation) systems. This approach can be particularly useful for initial control studies and for gaining considerable insight into what the optimal estimator for a truly infinite dimensional system should be. A detailed example of the estimation of the continuous shape of a string in tension is presented.