Free nice rotary optical encoders. How2 interface?

Seems some old mice have nice easy-to-use rotary encocers that "directly output TTL level quadrature signals. These units had 3 pin clear plastic IR LED sources and black plastic 4 pin detectors." It seems the 4 pin detectors are pretty nice. Sounds like they can be hooked directly to Arduino digital inputs w/o pullup/pulldown resistors and such.

Here are sites w/the info:
http://members.shaw.ca/swstuff/mouse.html
http://www.seattlerobotics.org/Encoder/200311/johnson/Mousebot.html

So what are good ways for code to deal with these? I've seen a few posts already around, but thought it would be great to have some newbie-level direction here with the links for hardware.

Thanks...