Hi Jeremy - I successfully used that exact IFM sensor for orientating a oddly shaped aluminum tube into a well. I would also suggest looking at what Keyence has to offer, although it will be more costly.
I've always been a fan of Balluff products too - they have a huge array of prox's... Also, I've found their service to be very good...
Finally, I had a lot of success with sensors from a company call "Tri-Tronics". Their "EZ" series of photoeye worked quite well in many "odd" applications. In your area, they would be distributed by IAC Associates. Try calling:
Sean Doyle 226-220-7908 Or
Murray Barber 519-966-3444.