OK now im a bit more confused.
The Ivan encoders have 4 pins, according to the diagram - +5v, ground and 2 others which I assumed are left and right so to speak. - Page 13 here - http://ia600403.us.archive.org/1/items/ArcadeGameManualSuperoffroad/superoffroad.pdf
However when I connect it all together it just does nothing. Using the cabs power (it all still works) also does nothing and the 5v from the uHID is clean.
Could you explain a bit more about having to have both connected to 5v?
Thanks
From ultimarc website:
Windows allows one instance of each axis when defined as Mouse (ie X, Y, Z) but if you are using multiple U-HID boards, Windows can recognise each board as a different mouse, using DirectInput.
That makes me pretty sure the U-HID only shows up as one mouse. If you have two pins in the config software labeled as x-axis and you have them going to separate wheels, that would be wrong. Both those pins should go to the same wheel and you'd use the y axis for the next wheel.
Let's see how quickly I can explain how optical encoders work and then you'll have a better understanding of what needs to happen....
There are two sensors on each encoder. 5v goes in and is only allowed to pass when light hits the sensor.
When the slotted disc is turned, it alternates between letting light pass and not, so you get a 5v pulse.
The sensors are spaced so that the direction can be determined by how the pulses are timed.
i.e.
A_B______A_B______A_B______ would be one direction
B_A______B_A______B_A______ would be the opposite direction
EDIT:^ok, example not technically 100% correct, but much easier for the layman to wrap their head around.

I guess a more accurate way would be:
A_BOTH_B_NONE_A_BOTH_B_NONE_ for one direction
A_NONE_B_BOTH_A_NONE_B_BOTH_ for the opposite direction