>The slop in the chains, gears, & rollers yields errors in excess of 1/2" in 20' length.
When you first start out, does it make accurate moves? And drifts over time - tolerance gets worse and worse? Or is it always sloppy?
For example, say you move 2ft of the wood and process it (your cutting, drilling?). That, lets just use hole, that hole is in tolerance (+/-0.0156" or +/- 1/64). Then you make another move and you accumulate a little more error, but still in your tolerance. Over time you keep accumulating error (repeatable error) and when you hit 20 feet your off by 0.5 inch?
If this is the case, there could be a problem with your scaling in the motion controller. Maybe you do not have your conversion factor right from rotary to linear. If it is correct and you notice a repeatable accumulation in the error, adjust your scaling to compensate for the repeatable error.
>The chain has cogs on it that grip the wood.
The 6' chain travels through about 2.5' of flat slotted track then loops around an 8" diameter toothed gear and always runs the same direction.
After you advance, the gripper comes back around to grip the wood again and advance it. Is there anything holding the wood when the gripper releases? When you grab or release the 2x4, it could advance a little on you..thus maybe that is why your looking for someway to sense it.
Are you feeding multiple piecies at a time? $200K chain sound pretty expensive. Could of purchase a 30 foot actuator less than that and controller to get your desired accuracy. Must be all the wood/sap and other stuff that collects on the system that led you to a chain drive? If only feeding (1) piece at a time and your accuracy problems are in the current griper set up, maybe you could redesign the gripper assembly. Have a parallel jaw gripper that clamps to the side of the 2x4. You feed your distance, then another clamp holds the 2x4 in place, you release the actuator gripper, move back you 2.5 feet, reclamp on the 2x4 then release your other holding gripper.
Maybe more detail on your process and your actuator setup if you can share?