Articulated ARM : Sensors / Programming

[takara159]

Fellow Programmers:

Looking for some guidance on how people are working with the articulated arm for this years competition in terms of motor control (Sensors) and programming it with Lab View.

Our team has come up with several different methods of tracking where the arm is in relation to itself:
Magnetic sensors, counting the number of magnetic variations as it relates to positions. (Not 100% clear on how to program this with Lab View)
Proximity Sensors, having the sensor look for changes in depth on a cog with multiple holes and using those as an indicator of position (There is no real good documentation that we have found on how to wire up or program the proximity sensor)
Potentiometer or Encoder: This seems to be the easiest route for a first year team as there is example code built into Lab View.

Thoughts ?

Thank you in advance