Moving this here from another less appropriate thread.
I pointed to a couple of really inexpensive options, including the Broadcom aedr chipset family for optical reading and an off the shelf optical strip:
and I wound up ordering the first one, set into a small board, for $2.50 off AliExpress, and a similar strip for around $10/piece (actually bought a 3 pack of 1200mm for $28.50, but they go up 7000mm).
Steve noted:
I really wanted absolute positioning as well, but couldn’t find a good solution. Broadcom has an absolute positioning chipset (link below) but the signalling seemed more difficult and more importantly the absolute encoding tops out at only 52mm at 318lpi. Broadcom sells a tape strip double that length (a bit longer for 180lpi) but I didn’t see any option or availability of one long enough to be useful to us.
They also support what they call pseudo-absolute positioning in the AEDR line - I need to reread the docs to understand its limits, but it does let you use a second row in the grating at various binary multiples to create an absolute position window. Unfortunately I didn’t find any off-the-shelf tape that seemed to already be in that format, and there are places that will custom print the grating inexpensively in volume but small quantities are very steep.
Regarding the lines-per-inch, I ordered my samples at 180dpi, mostly because the Broadcom chips that support that resolution work at 5v while anything higher resolution was at 2.8 or 3.3v and I didn’t feel like adding another transformer for now. 318lpi is the highest I found for reflective sensors, though there may be other vendors. For transmissive sensors (where the light shines through the strip to the receiver) you can go up to 2000lpi but that seemed mechanically more difficult and delicate. I’ve been thinking about Y for now and assuming the strip would mount directly to the rail of a lowrider (out of the way of the rollers) or if it doesn’t like the curve on a piece of square steel tubing running parallel to the rail. The encoder wants to be about 1mm from the strip, so a small roller to keep it off the strip and a spring to keep it on the strip should be enough.
No idea how it likes the presence of wood dust.
Will update when parts arrive and if I get a chance to play with them. I have a feeling it will take a while just to show something on a signal analyzer but maybe I’ll get lucky.