ok. stupid question for all the readers...
how do i ground my cp?
will someone walk me through the grounding process... with grounding the joysticks and buttons and the ipac? some site talked about daisy-chaining the ground wire, but i'm not sure on how to do this. how many ground wires would i need? (lol...i'm not even quite sure on what grounding means
).
also, once i have a ground wire, what do i do with it? do i connect it to the ipac? i see 2 spots marked on ipac for it, but i'm not sure what to do with this either.
thanks guys.
p.s. if you guys use lots of exciting examples and engaging anecdotes, i promise not to fall asleep in this class. 
The way most encoders work is that they have several terminals for inputs. Each input responds when that terminal is connected in a circuit (continuous loop) with "ground". Each button or joystick direction is actually a tiny switch; when a button is pressed, it completes the circuit from the input side of the switch to the ground side of the switch.
So, you don't really "ground the CP"...
Each "switch" for the CP (every button and every joystick direction) must have one terminal attached to ground. As you have noted, there are 2 connections for ground on your iPac. Since you (likely) have more than 2 inputs on your CP, you must find a way to get a wire from each "switch" in your CP back to this iPac terminal.
While it is possible to run a separate wire from each switch's ground terminal back to your iPac, this gets messy and uses a lot of wire.
What daisy chaining really means is connecting many switches' ground terminal together in a "chain".
Here's a picture of one of the "chains" I made up for My CP:
Each of the pictured chains shows 11 terminals. A 12th terminal was eventually added to the end, with a wire long enough to go back to the encoder location, giving me 12 connections per chain. Each chain served 1 player (4 joystick directions + 7 buttons + 1 start).
As you can see this is just several pieces of wire, each long enough to go from one switch (button or joystick direction) to the next. twist two wire ends together and crimp on a terminal to the pair of twisted wire ends. Repeat this process until you have as many ground connections as you need.
In my situation, I have a total of 8 ground terminals on my encoder... so I divided my controls up appropriately between them. In your case, you have two ground terminals, so your chains will be longer (serve more switches each).... but it's the same principle.
You could even get away with ONE ground wire for the entire CP... but that would make trouble shooting harder if a switch stops working in the future.
If this wasn't enough detail, or you have more questions, let me know!