We carry out a quantum analysis of a dc SQUID mechanical displacement
detector, comprising a SQUID with mechanically compliant loop segment, which is
embedded in a microwave transmission line resonator. The SQUID is approximated
as a nonlinear, current dependent inductance, inducing an external flux
tunable, nonlinear Duffing self-interaction term in the microwave resonator
mode equation. Motion of the compliant SQUID loop segment is transduced
inductively through changes in the external flux threading SQUID loop, giving a
ponderomotive, radiation pressure type coupling between the microwave and
mechanical resonator modes. Expressions are derived for the detector signal
response and noise, and it is found that a soft-spring Duffing self-interaction
enables a closer approach to the displacement detection standard quantum limit,
as well as cooling closer to the ground state