A distortion compensation method includes determining an undisturbed phase forat least one of a first position indication signal and a second positionindication signal. The method includes determining an undisturbed ratio thatrelates the amplitude of the first position indication signal at a firstfrequency to the amplitude of the second position indication signal at asecond frequency. The method also includes determining a disturbed amplitudeof the position indication signal and adjusting a position indication based onthe disturbed amplitude and phase, the undisturbed amplitude ratio, and theundisturbed phase. The method further comprises determining a relationshipbetween the eddy current phase of the first position indication signal and thesecond position indication signal.