By quick researching on the web, I found that pull up resistors for a rotary encoder (which type?) should be above 250 o and below 10 ko but 1ko is correct.
sheme on:
Assumed that is correct, there is still a problem I could not tackle because even with a validated code the count var remains to zero and also with a minimalist shematic without the capacitor. With a voltmeter, I found that, very scarcely, the pins have LOW values. They remain often on HIGH
(Arduino Playground - RotaryEncoders)
if this is the type of encoder you have (you could post a photo) then pins clk & dt get connected to gound in the encoder, so MAY need pull-ups - unless they are already fitted to the module. Or you could just use input-pullup.