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Arduino digital read out (DRO)? Answered

Hello all,

I'm wanting to create a digital readout for my tablesaw fence.

I see a lot of tutorials about using ultrasonic, but I'm concerned about:

1) interference from tool noise

2) whether it would be accurate enough

Concerning accuracy, I need at least +/- 1/64" (0.4mm). I mean, if it isn't at least as accurate as a lousy ruler taped to the table, why even do it, right?

Alternatively, I also found a couple of cool project on laser rangefinders:

I like the accuracy, but they don't seem to do so good over relatively short distances. Since I need 0-4 feet (0-1m), this still seems like the wrong technology.

Any other ideas? How would you go about this?