DRO encoders- Rotary or Linear?

Hi, I am ready to begin adding a DRO to my G4003 lathe. What is the
current thought on the best method to accomplish my goal?

IIRC, when I was looking into this before, the linear strips from
U.S. Digital were only available in 250 CPI and this was not
considered high enough to provide the necessary resolution. Using
rotary encoders meant the possibility of losing counts if the drive
cable slipped or stretched.

Now U.S. Digital has linear strips in 300 and 360 CPI. Will these
provide a resolution of 0.0005 or better?

I have a completed DRO board from Camtronics and several HEDS on
hand, so I just need to scrounge an old PC and start the installation.

Thanks for any input!