We present estimates of cosmological parameters from the application of the Karhunen-Loeve transform to the analysis of the three-dimensional power spectrum of density fluctuations using Sloan Digital Sky Survey galaxy redshifts. We use Omega sub(m)h and f sub(b) = Omega sub(b)/Omega sub(m) to describe the shape of the power spectrum, sigma super(L) sub(8g) for the (linearly extrapolated) normalization, and beta to parameterize linear theory redshift-space distortions. On scales k ~ 0.16 h Mpc super(-1), our maximum likelihood values are Omega sub(m)h = 0.264 plus or minus 0.043, f sub(b) = 0.286 plus or minus 0.065, sigma super(L) sub(8g) = 0.966 plus or minus 0.048, and beta = 0.45 plus or minus 0.12. When we take a prior on Omega sub(b) from the Wilkinson Microwave Anisotropy Probe (WMAP), we find Omega sub(m)h = 0.207 plus or minus 0.030, which is in excellent agreement with WMAP and the Two-Degree Field. This indicates that we have reasonably measured the gross shape of the power spectrum, but we have difficulty breaking the degeneracy between Omega sub(m)h and f sub(b), because the baryon oscillations are not resolved in the current spectroscopic survey window function.