If the device does indeed output asynchronous serial output data, then you need to match the voltage levels, polarity and baud rate to the Arduino. Preferably, use an oscilloscope to look at the output of the device, then you can determine the voltage levels, polarity and baud rate. If you don't have an oscilloscope, then at least try using different baud rates.
Another way to determine the baud rate is to write an Arduino program to measure and display the interval between transitions on the Rx line. Poll the rx line until you see a transition, then call micros() to get the time. Do this for a while, storing all the times in an array. After a while, dump the array to the serial monitor. The GCD of the interval between transitions is the bit interval, which is the reciprocal of the baud rate.
The spec sheet says the fader has 128 positions, so it could be encoding the position in a single byte. OTOH there may be some preamble to identify what sort of device it is. So you may get 2 or more bytes transmitted for each position change.
I've set the baud rate to 38,400, connected the power up to the 3.3V pin (as per the data sheet) and am getting half sensible information!
The first quarter of the fader gives values of 0 to about 64, then I seem to get two values at the same time of 64 to 128 and 192 to 255, the next quartile I haven't sussed out yet and the last quarter I get two bytes, one of 255 and the other of 192 to 255.
Perhaps this is the cascading referred to in the docs.
With a bit of maths I get a range of 0 to 254 across the whole device. Hurrah.
If anyone from the future is reading this, you can get the fader direct from infinium and it is a bit cheaper, plus has a range of output options eg analogue voltage. This would probably have been a better bet. But no worries.
I would like to use that Behringer X1 optical fader in a project as well. Reading the serial line seems to be straight forward, but I don't want to destroy the fader:
Which wire is GND, VCC and data? Is VCC = 5V?
(The links to the datasheet in here are all dead.)