Hi,
Now we're getting somewhere - that looks like it might work.
The keypad routine has nothing to do with reading the encoder. Put the GOSUB Encoder in the mainloop, before GOSUB check obviously....

And again, if it doesn't work then remove the keypad routine untill you get the encoder routine working - THEN try to make the two coexist. There's no guarantee that the encoder code works, I just posted it as one possible idea of how to read that kind of "encoder".