alumbrin:
Sorry...my mistake.. Now is attached..
Sorry but that is not a complete datasheet just a product information sheet which does not give the details of what exact model and options your unit has. In that product sheet it states that output options can be any of:
voltage, current, push-pull, long-line drive output, open collector
So which yours has will determine what electrical methods and components your will require to safely wire it to an arduino. The A and B signals will of course be the standard quadrature output signals to give you rotational and directional information. A Z signal is a one pulse per revolution of the encoder disk signal that can be used to extract RPM speed information or just as a index reference to keep track of actual shaft position angle at an given time when combined with the A and B signals in your software routines.
Lefty