You dont need to insulate the tool, your probe has the insulation. I made up a thing for setting tools manually, its a piece of 75mm dia steel bored out to 50mm and in that a piece of delrin which iteslf is bored out and finally another piece of steel in that which protrudes out further. I have two small holes bored in the metal either side of the delrin and can fit a small circuit board with a battery and LED, when I bring the tool up to the frnt piece it will light the LED on contact and is extremely repeatable, I could I suppose write a macro to do the offsets automatically but at the moment I just press the buttons to enter things manually.
What I do is I chuck this up, take a facing and dia cut with the master tool, fit the LED board and zero the Z of the master tool by touching off the end. I measure the dia with a mic and it should be whatever dia my master tool was already set to as I never change it. Next index the turret and manuall position the tool to touch off on Z and enter via buttons and DROs into the tooltable, do the same for the X, then the next tool etc etc etc.
Could be done in a similar fashion by just turning the dia and measuring with each tool but it would mean lots of wasted material if replacing lots of tools and also the Z would need feelers to get set correctly.
The ideal situation for me would be to have this "probe" mounted on a slide so I could position it accurately and that way I would never need to do the initial turning and could then semi automate things, maybe one day......
Hood