Is there a value for a pot that works best with an arduino for the best accuracy? Using a 1K vs a 100K, does one make it more accurate, I know it just reads in a voltage value but does it make a difference?
10k is a pretty good compromise between "accuracy" and current loss. The ADC on the Arduino likes a source resistance of no more than 10k, but then again when using a pot you probably don't care about full 10-bit accuracy. I think 100k should be fine too (and anything in between 10k-100k). Below that you're just wasting current through the pot: a 1k pot and 5V would waste 5mA through the pot at all times.
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The Gadget Shield: accelerometer, RGB LED, IR transmit/receive, speaker, microphone, light sensor, potentiometer, pushbuttons