[DonRotolo]

We have been playing with a Vishay/Spectrol position sensor P/N 601-1045-000 (Part No 594-601-1045 from Mouser). It outputs a smooth 0 to 5 volts in 360 degrees and is very sturdy mechanically. Only downsides are the abrupt jump from 5 volts to 0 volts at the 360/0 degree position, and the cost (about $60).

Don