[Kevin Sevcik]

Are you using MPLAB or EasyC? Are you using Kevin Watson's encoder code? Can you post your interrupt handler code? We need some more information before we can make intelligent suggestions. Offhand, I can suggest that your interrupt handler isn't correct in some fashion, you've forgotten to enable interrupts on the encoder pin, you've plugged the encoder into the wrong place, your encoder simply isn't working properly or isn't sending strong enough signals.... Unless you want to spend the day running down every single random idea we can toss out, please post more info about what's connected where physically, and what your program actually is.