Thank you Andrew, I know that system and lay-out. I rather use cheap standard parts to this one.
I will deal with the warping when it shows.
Rather than accept losing travel wouldn't it be better to mount the x axis DRO on the front of the table and do something else so you could continue to use stops. On my mill I added a steel rod below the x axis scale which I can clamp stops to. Although to be honest I haven't made the stops yet.
Russell
I was considering it, but it would bring the read head forward and fairly middle - to my work area.
Easiest way to mount the tape on the front of the table would be to remove the measurement tape rule out of groove and replace it with the magnetic tape. Perfect fit. Then it would be possible to use mounting holes of the stationary top block and indicator and replace it with a foot that would double as stop block and read head mount.
But then the tape would be really front of the table, where I tend to use squares, tools, magnetic stand etc. And the read head would be pretty proud and non shielded location.
Second option would be to mount the tape below the current stop into more protected position. That would mean some machining for the magnetic tape (2x10mm grove for magnetic tape + 0,5x16 mm for 0,2 mm stainless steel protective strip. This machining would be into readily machined surface .... maybe minimal chance for warping?
OR bolt on rail for magnetic tape and wonky looking arm. for stopper to clear this.
Another hour or two lego play time on the milling machine

Maybe all would just fit there and convincingly stay out of troubles way.
Pekka