Here's one of my faster ones:

A is 15.22ms duration
Difference between rise of A and B is 3.50ms
I nearly had time to send LCDOUT twice.

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I'm more than satisfied with what I have so far as encoder logic. When I remove LCDOUT, this is how many times the encoder logic can cycle during a fast pulse; a gazillion.

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I'm thrilled actually; with a big smile on my face as I type this.