Joe,
The latest software version works perfectly and can be resized to fit nicely on my 'old' laptop. Thanks for all your effort.

Does the software work with a lens-less camera pointed directly at a laser pointer? I'm thinking you could arrange the pointer to provide a straight beam at a set height above a rail and detect how the spot moves around on the sensor as the camera backs away from the source on a carriage. Turning the camera 90 degrees allows measurement of horizontal and vertical errors. This is the quantum version of John's taught wire and requires a rigid, adjustable mount for the laser on the bed of the machine under test.

All,
I advise against trying to remove the optics from your cylindrically shaped, metal bodied, Mircosoft, auto-focus webcam. They're actually very solidly put together and mine is now a small pile of mangled bin-fodder. I've ordered a much more flimsy looking manual focus version from eBay (and a laser pointer).

Kit