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An intensity modulated fiber-optic position sensor, based on a fiber to bundle coupling and a readout system using a CMOS image camera together with fast routines for position extraction and calibration, is experimentally demonstrated. Further, a simulation of the complete sensor system setup is made, and possible sources of error are analyzed experimentally. Our analysis indicates the theoretical limit of the system and identifies the causes of system errors. The results are encouraging for further development of the system setup.