1. A method for placing a component on a selected location of a substrate with a placement machine including at least an X-motion stage and a Z-motion stage including a pick-up head for carrying the component to the selected location on the substrate, said method comprising: capturing a first digital image of the bottom of the component; selecting a region of interest in the first digital image; selecting a repetitive feature contained within the region of interest; creating a template image showing the repetitive feature with background matter rendered transparent; capturing a live image of the selected location of the substrate; overlaying the live image and the template image to form a composite image on a video display; manipulating the relative position in non-vertical directions of the component and the substrate until the repetitive feature is brought into alignment with corresponding repetitive features in the composite image; and bringing the component into contact with the substrate by moving it in the vertical direction.