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You might try looking at OpenCV library. It is better suited for such tasks. http://docs.opencv.org/doc/tutorials/imgproc/imgtrans/hough_circle/hough_circle.html
Yes, your example seems logical, however I think you mean georeference not geocode. To start this setup you can do the following: Create a new polygon feature class defined with a spatial reference (in meters) that matches your geographic area of interest. Load in your polygon layer into ArcMap and start an edit session on it. Zoom in on the map to the ...
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