A novel engraving machine (NUT-1A) is presented, in which fully digital controlled AC system based on DEC4DA was used to improve the machining precision and sensitivity. This engraving machine was constructed around AC servo motor with encoder, controlled by a servo motor control card - DEC4DA. As the upper unit of AC servo motor, DEC4DA was a numerical control generator, which received pulses form CPU by ISA bus, and these pulses were amplified and converted to drive AC servo actuator. This novel engraving machine can achieve a higher positioning accuracy of ±0.01mm and positioning repetition of ±0.005mm, and its resolution is 0.001mm/0.0001mm. Moreover, because of multi-closed loops were used in the system, the steady and transient performances are more excellent. This system ensures a much quicker current regulation in closed-loop operation, of acceleration and braking in both directions, as well as stable speed characteristics. Amplifier boards are protected against excessive current, excessive temperature and short circuiting of the motor supply cables.