Ultra wide bandwidth (UWB) signals are commonly defined as signals that have a large relative bandwidth (bandwidth divided by the carrier frequency) or a large absolute bandwidth. Typical indoor environments contain multiple walls and obstacles consisting of different materials. The RF ultra wideband (UWB) system is a promising technology for indoor localisation owing to its high bandwidth that permits mitigation of the multipath identification problem. The work proposed in this paper identifies exact position of transmitter and receiver wireless nodes, calculates free space path loss and distance between two nodes by considering frequency bandwidth using 2-point and 3-point Gaussian filter. Also in the paper three types of indoor radio propagation models are analyzed at ultra wideband frequency range and results are compared to select best suitable model for setting up indoor wireless connectivity and nodes in typical office, business and college environments and WPAN applications.