I think I left out a very important factor .... This machine has never ran for this customer as it was bought used but doesn't work. I think (from the few mins I looked at it) that one of the DC drives are dead, The computer/PLC System is pretty much screwed and only the hyd pump works.. well turns on.
The material is small and the customer is hoping the upgraded controls will allow the smaller material to run.
It's good they're hoping, and not confident. They are, not confident, right? because to get a perfect lay with material that small is going to take mechanical precision. The original specs indicate to me that the mechanics that the machine was designed around do not support the precision you need. All the most advanced electronics won't make up for mechanical sloppiness. You can't have any end play in the spindle or play in the left/right axis. This borders on CNC IMO. You can't make a CNC mill out of a drill press.