Steve,
Yup, restarted pc many times. LOL. I would really like to know what the problem is. I guess I will have to look into it further.

You said "Look at the code in the Interrupt Handler. Put this in your main loop"

Did you mean to compile just the code you listed or to add it to one of the others? If you meant by itself then it compiled just fine.

I tried it out and had some strange readings. It starts with Rot1:00 and Rot2:35. When I rotate the encoders nothing happens.

To test and see if it was the encoder or the program, I unpluged the a & b chanels from encoder 1 and alternately touched them to ground and the numbers changed. This makes me think something is wrong in the encoder circuit. I played arround with different values on the resistors to no avail. The encoders output a positive voltage between ~1.85 and 5 and I have 4.7K resistors pulled to ground on each channel.

I did notice if I was under a bright light and held the encoders at just the right angle the numbers changed but they were jumping arround and not going 1.2.3.4~.

Man I didnt think encoders were so tough.

Smitty