These resistors would be in a different place. It looks like the output of that board will float high-ish due to the LED that's on them, but it may not be high enough for your interface board to reliably register. Depends on the encoder and what the value of the resistors on the board are. Resistors are cheap, so it won't hurt anything to try.
Also, the LEDs should reflect the two outputs. As you spin the encoder wheel between the optical pickups, you should be able to see the LEDs flash on and off. If you spin it slowly and watch carefully, you should see that outputs are in
quadrature (see the graph at the right). You can use these LEDs to visually confirm that everything is working prior to your interface board.