How to simultaneously use 5 rotary encoders?

Hey all,
Is there a way for me to use 5 rotary encoders simultaneously with 1 Arduino mega? I need to program the Arduino to read the inputs of the rotary encoders (each will control a separate function) and then output data to respective channels on a digital potentiometer. How would one hook up multiple rotary encoders to the Arduino, and use them simultaneously?
Cheers!
Eren Semonik

  1. Use PCINTs to decode the AB outputs of each.

  2. Use LS7184N from LSI/CSI. This chip creates a pulse out and a level to let you know which way the encoder is turning. Use PCINT for the pulse, and read the level. Respond accordingly in your sketch.
    http://www.lsicsi.com/pdfs/Data_Sheets/LS7183N_LS7184N.pdf
    About $3.50 a chip, have to work their distributors to see who has some.
    I used 4 of these with PCINT to read mechanical Bourne brand encoders in a '328P project.

The other way is to use the pin change interrupt on one pin of each of the 5 encoders, Wire the other pin to normal inputs.