Evaluate Mach2 Software

All,

Has anyone used the Mach2 software package? I am in the process of
migrating a panagraph engraver and Bridgeport milling machine to
CNC. I have downloaded the demo and it appears very impressive
(includes digitizing) and linear encoder input for DRO. I know this
is a very objective question, however what I am looking for is the
package capable or is there other packages that may cost more that
are better? Secondly, if these software packages are hooked up to
the mill, if I move the x (or y) axis manually, will the dro update
on the movement? Or is this why you would need to buy the linear
encoders?

Thanks,

Greg Maxwell