I see... our application was somewhat different from yours. We just needed to count pulses, NOT to determine a pulse frequency.
Some of the drives we are controlling with the 7344 can be run at rather low rpm values. Our software gurus (I am rather a hardware guy) have a test program which indicates rpm, and I remember that the rpm values indicated with low rotation speeds have a lot of 'noise' while higher figures are more consistent. We are using encoders with 2000 lines resolution, and at 600rpm nominal speed the values indicated vary between roughly 595 and 605 - at low rpm values accuracy is much worse. But of course the step rate omitted by the 7344 (and the drive motion) is stable when we check it with a frequency co
unter. So it really seems as if it is not easily possible to measure frequencies (or precise rpm values) with the 7344.
I don't think you can use the index pulse input to measure frequencies. This is one of the few motion control inputs which can not be read directly, AFAIK the only access you have to proper index detection is via a register indicating successful completion of the 'find index' routine - but it does not mirror the index pulse directly. AFAIK you can read the status of the other motion control inputs (limit switches) directly.
A workaround might be to use a frequency-to-voltage converter and use an analog input of the 7344. But AFAIK the sampling rate of these inputs is fixed and cannot be set by the user. I think the solution you suggest (using an external processor, such as an 8051 which has timer/counter registers and a RS232 port) might be easier and more precise.