0Got to say... It's quite superior feeling comparing to rotary Potentiometers.
Dent: 20
With switch
Product spec:

http://www.seeedstudio.com/depot/datasheet/RotEncoderSpec001.jpg
http://www.seeedstudio.com/depot/datasheet/RotEncoderSpec002.jpg
Explanation:
There are total 5 pins on the encoders, 3 of them on one side are for rotary encoding which need a simple circuit to supply DC 5V. The remaining 2 pin go short whenever pressed. Please refer to
example scheme for more clear understanding.
In the middle of 3 pins' side is COM port connect to GND .
And other pins (A and B same side of GND) separate pull to +5v via 10k ohm resisters .
Connect the A and B directly to Arduino IO pins.
Arduino usage: http://www.arduino.cc/playground/Main/RotaryEncoders

This product was added to our catalog on Friday 19 September, 2008.