Position sensors with nanometer resolution are a key component of many precision imaging and fabrication machines. Since the sensor characteristics can define the linearity, resolution, and speed of the machine, the sensor performance is a foremost consideration. The first goal of this article is to define concise performance metrics and to provide exact and approximate expressions for error sources including nonlinearity, drift, and noise. The second goal is to review current position sensor technologies and to compare their performance. The sensors considered include: resistive, piezoelectric, and piezoresistive strain sensors; capacitive sensors; electrothermal sensors; eddy-current sensors; linear variable displacement transformers; interferometers; and linear encoders.