The resolution of the encoders on the DMM servos is way higher than on a typical stepper system, so I don't think you'll run into issues with that. You're backlash or flex will probably be higher than the resolution of the encoder. It is 14 bit resolution (16384 ppr), 12 bit accuracy (4096 ppr) so the resolution can be as small as .0019mm and the accuracy .0078mm...