Many thanks for everyone who has helped me with this subject.... After having a good look at the HCTL2016 chip... I think I can do the whole job with it alone (ok one for each stream...) I have a 24bit wide I/O card for my PC with which I can drive the 2016s... A two chip solution!!!!!! The only problem I can see is the distance from the encoders to the PC... about 30 feet!!! If I put the 2016s right by the encoders then I hav a long parallel cable... Not good! But if I put the 2016s next to the PC then I have long leads carrying the quadrature signals... Very noisy.... Any ideas??? Phil