The Heisenberg uncertainty principle gives a mathematical relationship between the variance of two observations over a statistical set. What we find is that for certain pairs of observables (measurable properties) we find that if we keep measuring identical systems again and again that we end up with a spread in the measured results.
The Heisenberg uncertainty principle makes no ascertations about the precision of a measurement. It is a consequence that describes the relationship between the statistical measurement of what are called incompatible observables. It does not mean that the measurements are inaccurate or incorrect. It just means that between certain observables, we will not get the same measurements over and over again over a statistical set.
Think of a machine that measures some quantum state. The machine projects the measurement in the form of marbles. Each measurement makes a sack of marbles that varies in color, number, and size. We will consider color and size to be compatible (or commutable) observables. That is, every marble that is 0.5 inches in diameter is always green and vice-versa. However, color (and by extension size) is incompatible (noncommutable) with number. That is, if we measure the state and have the machine make our sack of marbles, we might get 5 green marbles, or 3 green marbles, or 3 red marbles and so on.
So make 10,000 measurements on identical systems (say we make 10,000 jars, each jar starts out being the same and we then proceed to measure each jar) and we get 10,000 sacks of marbles of varying colors and numbers. If we were to separate out the sacks by groups of numbers, we would find that for sacks of 5 marbles we have 10% red, 50% green, and 40% blue. For sacks of 6 marbles we have 20% red, 30% green, and 50% blue. And so on. Thus, we measure the number of marbles EXACTLY, but because a sack of five marbles can be red, green or blue then we get a spread of colors in our set of measurement. This spread will be described by the wavefunction in terms of color for the given eigenvalue of N marbles. This is the same as when we get an eigenfunction of position for a given eigenvalue of E energy. If the system has energy E_0, then the eigenfunction describes the positional distribution of the measurements of the system in this state (assuming time-independence). So if we measure the position of a particle in a system of state E_0, there are many many positions that it could be in and thus we get a statistical spread of position measurements.
Likewise, if we arrange the sacks by color we may find that green came in sacks of 5 10% of the time, 6 40% of the time and so on. This is another eigenfunction that gives the distribution of number for an eigenvalue of color. In this manner, we see that the eigenfunctions that describe the system in terms of color are different than the eigenfunctions that describe the system in terms of number.
Heisenberg's uncertainty principle then gives us the relationship between the variance of color and number in all our measurements. If we go back to our sacks and map out the number and color of the marbles in the sacks, we will find that we have a mean color and number (if we can allow for a mean color, we could allow the color to gradually transist over the visual spectrum as opposed to being three discrete colors). However, there will be a spread in the measurements in numbers and colors. The minimum spread is related by the uncertainty principle.
The problems of measurement and precision do not come into the argument yet, this is purely a consequence of the mathematics of quantum mechanics.
As for the Schroedinger's cat, that is something different. It's often a much abused example. It is a description of how quantum systems can be in a superposition of states but will collapse into a single state when measured. There is a difference between saying that the system was always in state A out of a set of states and when we finally measured the system we found it in A and saying that the system was in a superposition of a set of states and when we measured the system we found it in A. The results between these two statements can differ and is the subject of a lot of research centering around such experiments and ideas like the EPR paradox and Bell's inequality. But the problem with the way that many people use Schroedinger's cat is that Schroedinger thought it up as a way to show the unintuitive behavior of quantum systems in comparison to our macroscopic world. He did not actually believe or wanted to imply that the cat is actually in a superposition. It was an example of how difficult it is to connect the quantum and macroscopic world and the absurdity that can arise. Those that hear about today and become confused by it only help demonstrate the efficacy of his example though it seems to be too effective.
It remains useful because it is a good thought experiment when applying an interpretation of quantum mechanics. It challenges one to use an interpretation to make sense of the problem without resorting to such absurdities as having the cat being in a superposition. I place such discussions on the backburner as something warranting only personal amusement. The various interpretations of quantum physics do not have many consequences. Obviously, all valid interpretations predict the same experimental behavior and as such when working a problem using the Copenhagen or Bohm interpretation becomes one of personal preference. It is mostly useful in finding easier ways work certain problems.