I have not went with AD9833 yet, because if I can't run encoder, then there is no need for DDS. And by the way, some DDS code I see around the forum, so I think I can re-use it. For the encoder, this is simple encoder from inkjet printer, HEDS-9730. The ribbon has plain strips, 60 per centimeter (I've counted it under microscope). Before going with this encoder, I want to have some code running with simple, rotary, 3 pin, incremental encoder. My prototyping system has PIC16F886 on it now, and while now I can connect both pins to same port - say PORTA.1 and PORTA.2, if doing own code, I'd like to have a code, which will not be limited by same port.