Thanks for the replies.
The ADXRS300 looks promising. Since I am researching at a University I can get Analog Devices parts for free.
http://forms.analog.com/Form_Pages/corporate/parts.asp
This source suggests also using an accelerometer. Is the drift really so bad that you need to use an accelerometer and Kalman filter? I have done some work with accelerometers, and I know drift can cause problems. I have to use a signal analysis package to filter out the low frequency drift. But in this application, it is automatic control within the device, so I cannot store and upload data to a computer.
http://www.dprg.org/projects/2003-01a/
This project will have to be completely self contained in the model. I will need to select a microcontroller. What is a good microprocessor? I need something which can work with the rate-gyro and also have decent speed and ability to program in preferably C.
I was originally looking at R/C model sources for the rate gyros, but it looks like I'll go with this AD gyro or something similar. All the hobby shops I have called have been skeptical about what I want to do, and say that the only application of rate gyros is for helicopters. This source (same as above) says that model gyros are not preferrable.
http://www.dprg.org/projects/2003-01a/
"Although a RC hobby gyroscope is cost effective, it is a bit difficult to interface to a MCU..."
Thanks.