As the requirement of LCD products which are large screen and have high brightness increases, the role of light guide panel (LGP) of which micro-features diffuse the light uniformly on surface is getting important. In general, there are many errors in machining like machine tool errors process error, setup error and etc. The amount of setup error in general machining is not so big in comparison with the others, so it is mostly neglected. But, especially in v-groove micromachining, setup error has a significant effect on micro-features. Low quality product and high cost are resulted from setup error. In v-groove micromachining, to confirm the effect of setup error, it is identified and then setup error synthesis model is derived from analysis of tool and workpiece setup. In addition, to predict the micro-features affected by setup error and enhance the production efficiency, the setup condition satisfying the tolerance of micro-features is geometrically analyzed and presented.