We consider linear continuous-time retarded systems with multiplicative noise and polytopic type parameter uncertainty and we address the problems of and general filtering of these systems. These problems are solved by applying a modified version of the descriptor method that leads to a considerable reduction in the over-design associated with the ”quadratic” solution that assigns a single Lyapunov function to all the points in the uncertainty polytope. The theory is extended to the robust gain-scheduling case where on-line parameter measurement is exercised in the estimation process. Two examples are given that demonstrate the superiority of our solution method. The first example relates to a simple second order system whereas the second example is one of altitude estimation taken from the field of aerospace engineering.