I just installed a Newall C80 DRO on a mill...not exactly the same animal, but similar scale technology.
The procedure is relatively easy, once I got over the nerve wracking hesitation of drilling the mill with a Dewalt cordless...and then hand-tapping. That part alone took 6 months
However, you mount the reader head, indicate the two machined flats to .002" or better in 2 planes, then install the scale tube into the reader head. You run the scale to the extreme end of the travel, and then transfer punch the scale mounting bracketry. Same thing at the opposite end...the scale brackets are very forgiving clamping devices and have 3 degrees of freedom and a decent range of adjustment so you aren't putting anything into a bind.
I did machine a simple steel bushing of .625 OD and .250" ID so that I could square the .625 cylinder against the machine and transfer punch with a 1/4" transfer punch. Simply using a .625 transfer punch doesn't assure squareness as the mounting bracket has a rotational degree of freedom that will allow that misalignment to occur...and it will compensate for it...but I didn't feel good about it.
Then it's just to organize the cables and mount the CPU/face.
Also...for general purposes, the cross-slide scale must have finer resolution on a lathe...it essentially reads linear "radius" (although can be programmed to digitally read in "diameter") however a .001" movement in radius leads to a .002" change in diameter. Conversely, if you want to be able to hit .001" on a diameter, the scale must detect a .0005" linear (radius) movement, and usually if it can detect half that movement it will be precise enough, so .00025" (or .0002") which is what the Spherosyn readers are capable of. There is another version of the same technology called Microsyn which is just a physically smaller device.
-Matt