A machine-vision guided inspection system with go-no gauges for inspecting eggcrate assemblies in steam generators is considered. To locate the gauge at the right place, periodic corrective actions for its position and traveling direction are required. We present a machine vision algorithm for determining inserting position and traveling direction of the go-no gauge. The overall procedure of the algorithm is composed of camera calibration, eggcrate image preprocessing, grid-height adjustment, intersection point estimation between two intersecting grids, and adjustment of position and traveling direction of the gauge. The intersection point estimation is performed by using linear regression with a constraint. A test with a real eggcrate specimen shows the feasibility of the algorithm.