The Fanuc controls have two sets of parameters that can affect the overal resolution.

The DMR (Detect Multiplying Ratio)

and the CMR (Command Multiplying Ration). How these parameters are set can affect the resolution and the maximum
feedrates.

Basically, the pulse coders determine the "detect" resolution". A 2000-line pulse coder is typically used on a machine that
moves an amount per revolution that's divisible by 2000 (4mm, 6mm, 8mm, or .200 inch, .400 inch, etc.). A 2500-line
pulse coder is typically used with a ballscrew pitch that's divisible by 2500 (5mm, 10mm .250 inch, .500 inch etc.).

The pulse count from the encoder is only half of the story. The parameter for "Detect mulitplying ratio" for each axis
affects how small the "Detect Unit" is for your pulse coder. For example:

DMR = 1 Only the leading edge of each "A" pulse is read, giving 2000 pulses per revolution

DMR = 2 The leading edge of both the "A" and the "B" pulse is read, giving 4000 pulses per revolution

DMR = 3 The Leading and trailing edges of both the "A" pulse and the "B" pulse are read, giving 8000 pulses per
revolution.

Now, if the axis actually travels 4mm per revolution of the pulse coder, and you have a 2000 line encoder with a DMR set
to "2", then you've really got a "Detect Unit" of .001mm. Notice that you COULD have a DMR setting of "4", which would
give a detect unit of .0005mm.

Now for the "Command Multiplying Ratio", or CMR parameter:

If the "Detect Unit" is .001mm, then you want to only move ONE detect unit for each command unit (the smallest
increment you can move with your program). If the smallest command unit is .001 mm, and your Detect unit is also .001
mm, you want a CMR set to "1". If the Detect unit is .0005 mmm then you want the machine to move TWO detect units
for every command unit, so you set the CMR to "2". Am I makeing any sense?

To get the best resolution possible, you want to set the DMR to the highest number available (4). Unfortunately, this
doesn't always work out, because there are only a few DMR/CMR combinations that will work with any given machine. If
you set them wrong, you could get an axis motion that doesn't match the motion on the CRT display for that axis. This is
how they set lathes to give "diameter" values on the screen. The DMR/CMR ratios are chosen so that the axis only moves .
0005mm for each .001mm you program. After all, .0005mm of linear axis motion is equal to .001 on the part diameter.

If you can double both the DMR and the CMR, you will double your resolution with out changing how far the axis moves
per command increment. That's great for your situation, but you will have to re-set a BUNCH of other parameter too. For
example, the parameters for maximum feedrate, maximum rapid rate, permitted servo following error, etc. These
parameters are all affected when you change the DMR or CMR parameters.

You also have to adjust servo loop-gain parameters, since the gain will double when you cut the detect unit in half.

As you can tell, some machine tool builders sacrifice a bit of resolution to get higher feedrates and higher rapid rates.

Remember: Write down the old parameters before you start playing around !