Then if the rotor is pointing North, what would be the value of "reading"? If the rotor was pointing South, what would it be?
North = 0 and 4 on = 00010001
South = 4 and 0 on = 00010001
That's my point.
East of north = 0,1 and 4,5 = 00110011
West of south = 4,5 and 0,1 = 00110011
So you have better resolution but again, I don't see how you can tell the difference.
Unless I'm missing something here (it wouldn't be the first time :)) you have to remove one of the magnets.
Rob