The new project needed a large selection method for frequencies and voltages, and traditional rotary switches became expensive and complex. So I decided to use a rotary encoder together with an embedded controller. It also solved the problem of a complicated frontpanel, because I now could use a display driven by the controller.
While researching rotary encoders, I learned a lot about decoding them, and eventually decided on a method that is adequate for my application.
I wrote two posts on the PicAXE forum to explain this in more details, and here is the link: http://www.picaxeforum.co.uk/showthread.php?28222-Demystifying-Rotary-Encoders-(one-more-time)-Part-1-2
Enjoy!
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