An automatic lead sensing and fine-forming system is disclosed for preparing the leads of electronic components so that they are ready to be inserted by robots into holes on printed circuit boards. The positions of the lead tips and the positions of the holes are sensed and compared to determine if any leads need to be bent. These leads are then bent and the force on the leads and their displacement are sensed and recorded during the process. The data recorded is then used for subsequent bendings, where necessary, for bending the leads to the target locations so that all the leads fit simultaneously into the holes. To simplify image processing, the lead tips are illuminated by light originating from substantially isotropic directions from locations substantially coplanar with the region of the lead tips. A telecentric lens system is used in the optical sensing of the position of the lead tips so that measurement of the distances between leads is unaffected by variations in the separation between the lead tips and the sensing device.