Hi JimB, thanks for the feedback.
Yes, the motor needs to have variable speed to track the input, though now you mention it, not necessarily in both directions - it could be control down, zip back quickly, though that might be more complicated. I put in PWM because I don't want to lose power at low speed - though again I start to feel like I'm missing an important point here...
The feedback sensor is from an optical interrupter, hence the digi-pot. (Arrived at thanks to help in another thread) If I make it a quadrature encoder, signal conditioning then comprises a buffer, a pair of D type flip flops and creating an up/down control signal to the digi-pot. The reason for using an optical encoder + digital pot is because it's quite a small motor and I don't want to load it with a linear potentiometer.
I KNEW I was putting in some extra complication! I started out with an opamp only design, then added the window comparator after I realised the digi-pot step problem. I'll take the opamp out now - thanks

But then I need to create limited gain window comparator, don't I? Amp with dead zone.
It's actually going to be for the up/down control of a pcb drill which uses carbide bits. I want both hands free to position the board, and precise movement to minimise risk of breaking the bits, so I'm using a cd-rom drive head mechanism, hence the very small motor. The weight of the drill motor will be semi-balanced with a counterweight. Also on a very tight budget (well, non existent, really), so I have to work around using free or very cheap parts.
Big thanks for the pointers
