Repeated quantum nondemolition (QND) measurements for continuous optic
al waves were performed by combining a degenerate optical parametric a
mplifier and a squeezed-light beam splitter. Two-step quantum state pr
eparation and three-beam entanglement of the individually squeezed out
put beams were demonstrated. The experiment is analyzed using a set of
generalized criteria for nonideal individual and repeated QND measure
ments. The system was operated fully stabilized for up to 36 hours.