1 hand and petertha:
Here are the details and some pics of the DRO install. Figured I would just add them to this post, I hope its the right place for it...
Z-axis: The instructions are pretty good about describing how to set the track so that the read head won't strike the end and damage the glass. What I didn't think about, was the amount of room that the aluminum cover would take. As you can see from the 4th picture, I had to grind down the head of the cover bolt to let the carriage pass by. Nothing major, but there is enough room that the track could have been mounted a 1/2" lower... They sent the generic brackets you see for the z-axis. In my case, I did not have to machine or make anything to mount the z-reader. I put a couple of stand off bushings in (as they recommend) between the cast iron of the lathe and the track, since the cast isn't a true surface. I had to add .030" shim to the head end of the lathe to true the track to the ways. Vertical adjustment is simple, since there are slots in the track itself.
X-axis: I deviated from the install manual a bit here, not that anything is set in stone, but I really wanted to mount the track with the trolley down to keep as much debris from the chance of getting in as possible, (the install book shows it sideways). There was just enough room to mount it trolley down. I should mention, that I bought upgrade ($50)--the 1 micron reader for the cross slide and it was also a "slim line" reader. I'm not sure if the standard 5 micron reader would have fit like this. The bracket I used to mount the reader to the carriage was one provided by DRO PROS (6th pic), but did not come with the lathe kit. I robbed it from the mill kit that I also bought...but, as the instructions say, you might have to make your own mounts. I put stand off bushings in again between the cross slide and the track again, but mostly because I had to shim the track out enough for the reader underneath to clear some of the casting on the carriage--maybe .030" or .040". The angle bracket required some milling down to get it to fit between the ways, and a couple new slots to connect with the reader. Also, since it was a casting, and I used the inside corner, I took a few passes to true up the inside corner to a true 90. No big deal, since I have a bridgeport five feet away! To mount the reader bracket, I removed the rear chip shield. I removed the travel stop from the back of the cross slide. I ran the cross slide out, and off of the lead screw nut, until the cross slide was out of the way of the area between the ways. I drilled two holes down through the cross slide ways between the bed ways. Using an tap extension, I tapped the holes from below, up through the bed. Wasn't comfortable, but it worked ok. I deburred the holes and cleaned the ways, and then reinstalled the cross slide, travel stop, and rear chip pan. In the end, The install worked out great, because the read head bracket became a sturdy stop in case the tailstock bumps into the carriage. I'm going to add a small piece of aluminum to the top of the cross slide to cover the gap between the cross slide and the track. I tapped the back of the carriage for a nylon strap (5th pic) to keep the reader cable in just the right spot so that the cross slide doesn't rub it, or the tailstock hit it.
I also purchased the grizzly tailstock DRO. I don't know how "accurate" it is, but most of my operations won't require .0005" accuracy with the tailstock. Just though it would be easier than reading dials... I have yet to install it, but will add some pictures of that when I get it done.
Hope this satisfies your curiosity or helps with an install. I can't say enough good about DRO-PROS and would buy another readout from them without hesitation if I add more machines.