Stan: I agree that there is no use for the continuous resistance from the potentiometers. I would settle for a rotary switch that produced 10 different values to distinguish it's position. I believe this was among the various solutions that were proposed earlier. Is there such a thing available off the shelf for under a dollar?
The rotary encoders are a bit more software intensive and I'm sure that you're right and someone has already tackled that problem. The phasing of the wave forms is a tricky bit of logic. But you do get the advantage of knowing the direction; CW, CCW. Also, they're kinda cool as controls go.
GRJ: Thanks for covering the part number break down.
