Is it possible to measure position using accelerometer and gyroscope?

Hi All,
Is it feasible to measure position to the accuracy of a millimeter using accelerometer and gyroscope. I cant use contact/proximity based sensor for my application.
I can afford to reset the system every few seconds to avoid error acculumlation.I need the solution to be a realtime(<20ms). How can this be achieved ? Any pointers/guidance is welcome. Simple Double Integration is suffering with drift in output.

-Gangatharan

No you can't get that accurate using an inertial system even over short ranges, there is too much noise from the sensors.

Linear CCD and laser spot?

Yes that might work.

I can afford to reset the system every few seconds to avoid error acculumlation.

Just readying doesn't avoid error accumulation, it is restarting and recalibration. Without the recalabration the errors are still present and they will still accumulate.