the push button works fine which is "NO" on pressing it closes circuit and resets the arduino
What are you talking about ? Who says it's suppose to reset the arduino ? How did you connect the switch ? Post a schematic or something explaining the switch connection. Show me in the code where it is supposed to reset the arduino when you press the switch. If the arduino is reseting you are probably shorting the 5V because you connected the switch wrong.
this is the only reference I can find about the switch and even it does not say anything about how to connect it.
- This s/w works fine with just a standalone rotary encoder, but you will need
' to supply your own 10K pullups to 3V3. For a standalone encoder RA=CLK, RB=DT, & SW=SW
'
So did YOU connect it to your RESET pin ?