I will discuss our recent experiments where we have made the closest approach to the quantum limit for continuous position detection of a mechanical structure, a factor of ~5 from the uncertainty principle limit. We have developed a nano-electro-mechanical device with an integrated nanomechanical resonator and ultra-sensitive single electron transistor. The success of these experiments paves the way to the realization of truly quantum states of the mechanical device: squeezed states, number states, and most exciting, the formation of mechanical entangled states. I will also discuss the applications of this technology from advanced force microscopes to readout for quantum information devices.