I usually never lose intrest in this type stuff. I have come to notice more often then not the OP will either resolve their problem or give up without ever posting about it. Thanks for checking again, I am sorry your post was lost. ANYWAY,

I will have to go back and look at the code again. I must admit I don't remember how I thought you could lose the R, I think I must have been thinking the A & B magnet fields would crossover and be more like a encoder output.

But now we at least know for sure it is not the hardware, so that variable is out of the question. I need to re=read the thread but will post something in a little bit.