http://cgi.ebay.co.uk/Dial-indicator...3%3A2|294%3A50
You Could use a DTI like this, maybe from a USA source.
Its as easy as bending a 1/4" dia bar at 90 degrees holding in chuck or collet and fixing the "Clock" in the appropriate place.
Think positive your an engineer, you make stuff.
Another tip is to run the clock on a piece of flat stock so you don't jerk the reading.
As regards clamps the mitee bite seem good but i have no idea on cost.
You will end up spending more on various tooling than the cost of the machine.
HTH
Phil