1. does it matter on the potentiometer what the tabs are connectted to basically from diagram the 1st tab and the last tab are both hooked to the ground from 1stplayer to 2nd player on diagram so from diagram im not sure which is the ground. Still need to get meter to read but its a brand new pedal from HAPP.
If the first and last tabs on a pot are hooked to ground, it will never work. It will only read ground.
Also, on the encoder the inputs aren't ground, they are switched "on" when ground is connected, completing the circuit and allowing current to flow. In plumbing terms, inputs are faucets, ground is the drain. Hook your drains together(daisy chain ground), no problem. Hook your faucets together and you won't be able to choose between hot and cold water.
Sorry if my earlier posts were unclear.
Take 2: Pot theory -- from the top.
Looking at the diagram below, You see the zig-zag (resistor) and an arrow (wiper).
As you turn the pot, the wiper moves up and down the resistor.
When it moves up, there are less zig-zags (lower resistance) between 1 and 2, and more zig-zags (higher resistance) between 2 and 3.
The resistance from 1 to 3 is constant, no matter where the wiper is at.
[/theory]
Connect pot tab 1 wire to 1down. Your 1st picture, upper right - 6th terminal from the right.
Connect pot tab 2 wire to 1up. Your 1st picture, upper right - 5th terminal from the right.
Connect pot tab 3 wire to ground. Your 1st picture, upper right - last terminal on right.
If this works, but it is backward, swap the wires for 1 and 3.
Scott
P.S. Based on the wire colors in your picture 2, I'd guess that red is 1, green is 2, and black is 3. Ignore this guess if you can see which tab they are actually connected to.