  We present in this paper a Bayesian parameter estimation method for the
analysis of interferometric gravitational wave observations of an inspiral of
binary compact objects using data recorded simultaneously by a network of
several interferometers at different sites. We consider neutron star or black
hole inspirals that are modeled to 3.5 post-Newtonian (PN) order in phase and
2.5 PN in amplitude. Inference is facilitated using Markov chain Monte Carlo
methods that are adapted in order to efficiently explore the particular
parameter space. Examples are shown to illustrate how and what information
about the different parameters can be derived from the data. This study uses
simulated signals and data with noise characteristics that are assumed to be
defined by the LIGO and Virgo detectors operating at their design
sensitivities. Nine parameters are estimated, including those associated with
the binary system, plus its location on the sky. We explain how this technique
will be part of a detection pipeline for binary systems of compact objects with
masses up to $20 \sunmass$, including cases where the ratio of the individual
masses can be extreme.
