I dug deep into the scrap box and found a couple of dippable encoders that I forgot I had. Lowest res setting is 600, then 800, then 1000, so they looked perfect.
Hooked up to the optipac and got zip. Loads of checking and messing with wiring configs got me no-where. Finally I used an external 5V direct to the encoder, and shared to GND with the optipac and I was in business. The 5V into tje opti from the USB was still up at exactly 5V, but through the opti it dropped to 4.7V. I guess this encoder draws more current than the 3000 as it's got a bit more going on inside with the dips and electronics.