Download the code to make a 2 axis digital readout to put on your old machine tools. This uses the Parallax propeller chip, along with a 2 line LCD display and two pushbuttons. Two quadrature encoders provide position data. The display shows x and y position, either axis can be zeroed. The scaling can be set for each axis.

The picture shows the hardware. I used the propeller demo board.
Bare prototyping boards are available.

DRO.SPIN is the code for the
propeller chip.

download      DRO.SPIN
you also need the propeller tool
software from Parallax