As per your post I opened C/users/my name/documents/arduino/libraries/Rotary . I can see all the files mentioned by you in the "Rotary".
But when I opened the IDE / "sketch/import library " I can see the name "Rotary" in it but when I click it open ,it is totally empty (only the name is there).
That's as it should be. You don't get to see the code, but at the time of compile, the IDE will load that code for you so the functionality is available to your code (not copied into it, but referred/linked to at compile time).
All my efforts to install it properly is yet to succeed. I am wondering whether you can post your "Rotary" code as seen in your IDE sketch library.
I'm sorry but I don't understand your question here. I have no rotary code. Here is the process I followed: I simply downloaded and copied the library files to the correct directory, started the IDE, pasted your code from the first post, changed the lower case r in rotary.h to a capital R in Rotary.h then pressed compile...and it does.
I can't see what it is that's broken on your side, but hopefully from above you'll see something