Newbie thinking about using ARDUINO: Need 5 rotary encoders - possible?

Using Arduino Sensors
3

RIDDICK:
1.
if u use one 4051 u need 4 arduino pins to get 8 input pins...
if u use two 4051 and an inverter u need 5 arduino pins to get 16 input pins...

what kind of rotary encoder do u use?
how many output pins do they have?
if they had 1 analog output pin (like a potentiometer) u could connect 6 of them to an arduino uno:
http://arduino.cc/en/Main/Hardware

Hi Arne,
thank you for your reply.

to 1) If thought of this solution: http://www.google.de/imgres?imgurl=http://tomekness.files.wordpress.com/2007/05/4051_examples_72dpi.jpg&imgrefurl=http://www.arduino.cc/playground/learning/4051&h=363&w=567&sz=86&tbnid=O72s5y68CcOxJM:&tbnh=90&tbnw=141&prev=/search%3Fq%3Darduino%2Bmultiplexer%2B4051%26tbm%3Disch%26tbo%3Du&zoom=1&q=arduino+multiplexer+4051&usg=__58W3-nFakpfAou3N2GGVLAU49xQ=&docid=CbdPBN3I2ylBUM&hl=de&sa=X&ei=KNtqUNnGOsXHswbp-YGICA&ved=0CD0Q9QEwAg&dur=750

to 2) It up to the solution that would work. Shouldn't be too expensive (< 5,- Eur). I found the ready built Mathew Rotary Encoders with LED Ring and some examples on Youtube, using two Arduinos. Arduino MIDI Rotary Encoders in Traktor - YouTube

So here comes the point, if is too expensive or in my opinion too "difficult to realize" I will stop going any further.

cheers!