An angular magnification effect of diffraction is exploited to provide improved sensing and scanning. This effect is most pronounced for a normal or near-normal incidence angle in combination with a grazing diffraction angle, so such configurations are preferred. Angular sensitivity can be further enhanced because the width of the diffracted beam can be substantially less than the width of the incident beam. Normal incidence configurations with two symmetric diffracted beams are preferred, since rotation and vertical displacement can be readily distinguished. Increased sensitivity to vertical displacement can be provided by incorporating an interferometer into the measurement system. Quad cell detectors can be employed to provide sensitivity to rotation about the grating surface normal. A 2-D grating can be employed to provide sensitivity to angular displacements in two different planes (e.g., pitch and yaw). Combined systems can provide sensitivity to vertical displacement and to all three angular degrees of freedom
