Hello Praveen,
I think You have identified it correctly. There are printers that comes with a DC motor to move the cartridge. However you might have already noticed a thin plastic strip with 1000s of tiny black lines? This is called an encoder. By using a photo-transistor, the distance travelled is measured using this method. Since the measurement is read back in this way, this is referred as a servo system.
Have a look at following images.
Linear encoder:

- Encoder_strip.jpg (77.29 KiB) Viewed 11070 times
1 - Encoder strip (semi-transparent gray strip)
2 - Carrier belt (black and brown toothed belt)
Rotary Encoder:

- Rotary_Encoder.jpg (18.63 KiB) Viewed 11070 times
In printers, the signal from these encoders are read by using a small circuit as below.

- encoder_circuit.jpg (31.02 KiB) Viewed 11070 times
Finally a video which tells everything
[media]http://www.youtube.com/watch?v=LQFQ-sCsJWc[/media]