Flywheels are of interest for a wide range of energy storage applications, from Support of renewable resources to distributed power applications and uninterruptible power systems (UPS) (Day et al 2000 Proc. EESAT 2000 (Orlando, FL, Sept. 2000)). The use of high-temperature superconducting (HTS) bearings for such systems has significant advantages for applications requiring large amounts of energy to be stored with low parasitic losses and with minimal system maintenance. As flywheel systems increase in size, it becomes a significant challenge to provide adequate stiffness in these bearings without exceeding the strength limits of rotating magnet assemblies. The Boeing Company is designing and building a prototype flywheel of 10 kWh total stored energy and has focused Much effort on the FITS bearing system. This paper will describe the general structure of the bearing and the steps taken to optimize its magnetic and structural performance and show recent test results.