The Advance Radiographic Capability (ARC) at the National Ignition Facility (NIF) is a laser system designed to produce a sequence of short pulses used to backlight imploding fuel capsules. Laser pulses from a short-pulse oscillator are dispersed in wavelength into long, low-power pulses, injected in the NIF main laser for amplification, and then compressed into high-power pulses before being directed into the NIF target chamber. In the target chamber, the laser pulses hit targets which produce x-rays used to backlight imploding fuel capsules. Compression of the ARC laser pulses is accomplished with a set of precision-surveyed optical gratings mounted inside of vacuum vessels. The tilt of each grating is monitored by a measurement system consisting of a laser diode, camera and crosshair, all mounted in a pedestal outside of the vacuum vessel, and a mirror mounted on the back of a grating inside the vacuum vessel. The crosshair is mounted in front of the camera, and a diffraction pattern is formed when illuminated with the laser diode beam reflected from the mirror. This diffraction pattern contains information related to relative movements between the grating and the pedestal. Image analysis algorithms have been developed to determine the relative movements between the gratings and pedestal. In the paper we elaborate on features in the diffraction pattern, and describe the image analysis algorithms used to monitor grating tilt changes. Experimental results are provided which indicate the high degree of sensitivity provided by the tilt sensor and image analysis algorithms.