It will not be as accurate as a DRO. But a G0704 will not be able to hold the tolerances down to the level that a good DRO can read anyways. Backlash of a leadscrew can be compensated for via the software and you can use techniques similar to how you would is a mill manually to improve this further (planning cuts all in the same direction at one time). My original statement was meant for those who were thinking of cnc for their G0704. And my advice is to skip the DRO. Yes the scales can be used to verify the position to the cancellation controller but the G0704 has too many other issues that will affect it's ability to repeat tolerances. You are just adding to the costs at that point and getting little in return.
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DRO for G0704
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