Ambient Intelligence is a research area that has gained a lot of attention in recent years. One of the most important issues for ambient intelligent systems is to perceive the environment and assess occurring situations, thus allowing systems to behave intelligently. As the ambient intelligence area has been largely technology driven, the abilities of systems to understand their surroundings have largely been ignored. This work demonstrates the first steps towards an ambient intelligent system, which is able to appreciate the environment and reason about occurring situations. This situation awareness is achieved through knowledge intensive case-based reasoning. 1 Background and Motivation Mark Weiser coined the term ubiquitous computing to describe the way computers would ". . . weave themselves into the fabric of everyday life until they are indistinguishable from it" [1, p. 1]. Since then this area of research has gained considerable impetus, as well as many names. Although...