This information is very helpful . I ordered my QC Phase II tool post from Enco They had a 20% off everything deal. I am so new I do not understand what you mean by a 1" travel indicator is this simply just a dial Indicator?
Yes, it is simply a dial indicator with 1" of travel. The indicator I linked is a typical example.
They mostly all follow the same basic design. A big dial with graduations, a round shank 3/8" in diameter that will fit into a holder, a lug on the back that can also fit into a holder. The backs can usually be removed and replaced with magnetic backs or one with not lug, or one with a different mounting.
They are extremely simple in design, the plunger has a gear rack milled into it that turns a gear. The gear turns the dial. The precision of the tool is in how well the gears are made. The less precise the milling of the teeth and arbors or the more inaccuracies in the plunger fitting, the less precise the gauge will read. Another factor is how smoothly the plunger travels, cheap DI's will often hang a bit when doing very small adjustments or very slow adjustments, this often gets worse with age as the return spring gets stretched. The tip of the plunger will usually have a ball (you can usually replace with different tips), these balls tend to chatter a lot when rolled making it difficult to read the dial on cheaper DI's.
How accurate an indicator you need depends on what you expect to do with it. If you plan to use it for centering a lot of work in a 4jaw or for centering holes on the mill, then a more expensive unit is a good investment. If you plan to use it mostly for ending machining cuts that will be checked with a micrometer, then you can get away with a cheaper unit.
Test indicators are usually much smaller, mount with a dovetail (they should include mounting hardware as well), and have a lever rather than a plunger. They usually read in 0.0005 or 0.0001 increments and are used for testing your machinery for accuracy or making sure that stuff is really on center.
It really comes down to an accuracy vs. precision issue. The vast majority of measurements made with an indicator are relative measurements (as opposed to absolute measurement), ie. how far off center is the part. For this we are concerned with precision, we want the indicator to consistently return to where it started. If you mount the indicator in a height gauge and use it with a granite plate so you can measure the actual dimension of a part, then you are concerned with accuracy - how far off is the measurement from the actual size. Cheaper DI's will tend to have good precision and low accuracy, if you center a part, move the indicator and check, you can mitigate many errors in precision and only have to contend with sticky plungers are the like.
My feeling is that you should get a decent indicator and the best micrometer you can afford. You want both accuracy and precision in a mic. If you can find a USA made set of Central Tools mics, you will probably be pretty happy with them. They are dirt cheap compared to Starrett, and do the job well.
-Josh