Scales, etc...

Hi All,
Long time lurker.
I am a home shop type and love following the threads that develop
here. A thought or two and a question...

I know that most of the traffic here is about CNC conversions but am
wondering about DROs myself. (read: "I want one for my lathe and
mill, but am too cheap/poor to buy one")It seems to me that the
readout part of this system has been largely solved by a number of
clever and generous people who came up with software or
hardware/software soloutions that they have posted on the web and/or
shared here. The problem seems to be with suitable scales, suitable
meaning "cheap and accurate" and maybe reasonably "home-brew-able".
Even with the US digital strip encoder, after I buy enough strip for
a full sized mill, 2 suitable readers for same, and whatnot, I am
spending a very significant portion of what I have to spend to buy a
complete DRO. Any brilliant ideas? There MUST be another way...

As I am about to be setting up my shop again after a long hiatis, I
am looking here for bright ideas. Have many of you had much
experience just using rotary encoders and software "backlash
compensation" on the leadscrews?

How well does this work?

Decent rotary encoders are fairly cheap and available as are
suitable PC's and the software to read the encoders is cheap or free.
I am curious as to what others experiences with this setup are. If
that combo will consistantly work to a few thou, I would think that
is plenty close for most HSM's and a great deal nicer than all of
the "overshoot and crank back in the same direction" and scale
counting I do now.

Of course I too, would *like* a set of glass scales that
consistantly read to a half thou, and could probably find some I
could "almost" afford, but I think that I would rather spend my money
on other things.

Soliciting thoughts/opinions. Love following this group, wish I had
more to contribute.

Thanks,
AL