Hi Burr, I cooked up a plug-in command to handle that kind of tolerance based drawing of lines between selected points.

If you install and run the attached ConnectPoints command, it will let you select point objects, then prompt you for a tolerance value.

After you enter a tolerance, any of the points that are within that distance of one another will have a line generated between them.

That's not going to really work in all cases for doing a continuing chain of things (unless there is a very even spacing between the points), because there can be a kind of web of connections between points, but it should work for the kind of close together paired points like you have in this case.

- Michael

EDIT: updated ConnectPoints command to have a units designator on the tolerance field.

EDIT2: updated ConnectPoints command to remove selection from points that were not targeted for connection.