An extended Kalman filter is used to estimate size and packet arrival rate of network queues. These estimates are used by a LQG steady state linear perturbation PI controller to regulate queue size within a computer network. This paper presents the derivation of the transient queue behavior for a system with Poisson traffic and exponential service times. This result is then validated for ideal traffic using a network simulated in OPNET. A more complex OPNET model is then used to test the adequacy of the transient queue size model when non-Poisson traffic is combined. The extended Kalman filter theory is presented and a network state estimatoris designed using the transient queue behavior model. The equations needed for the LQG synthesis of a steady state linear perturbation PI controller are presented. These equations are used to develop a network queue controller based on the transient queue model. The performance of the network state estimator and network queue controller was investigated and shown to provide improved control when compared to other simplistic control algorithms.