Abstract: A modular system for use with X-Y peripherals is provided. The system includes a master controller operatively connected to one or more slave X-Y peripherals in a network. Different types of slave X-Y peripherals are accommodated by the system, e.g. sewing machines and engravers. Each slave X-Y peripheral has a unique address for independent communication with the master controller. The master controller tracks the functional relationship existing between it and each slave X-Y peripheral using state architecture. Servo control of a tool or head in an X-Y peripheral is also disclosed. The tool is movable in a Z dimension relative to a workpiece residing in an X-Y plane. Method and apparatus are also provided for positioning a carriage of an X-Y peripheral at a home or reference position in one or more dimensions.