I have new suzo happ 3 inch trackball. Only goes left to right. Checked all connections and I feel they are correct.
I assume the trackball is connected to the CHAMMA Game Elf system you mentioned in your other thread, right?
Which version optical boards and encoder do you have? Red optical boards with a Molex harness/adapter connected to the trackball inputs on the Game Elf?
Does the cursor not move at all on the Y-axis (bad wiring or two burned out LEDs/photo-diodes) or does it move back and forth one step? (one stuck data line)
Here are some troubleshooting tips.
1. With power off and multimeter set to ohms, check for continuity between ground on the Red boards and ground on the PCB or power supply.

2. With power on and multimeter set to volts DC, check if 5v is present at both Red Boards.
3. Check the voltage on the four data lines. (2 per Red Board)
When you slowly move the trackball, you should see each data line alternate between logic high (near 5v) and low (near 0v) as the encoder wheel turns, blocking and un-blocking the optos to generate a quadrature waveform like this.

4. If one of the data lines is stuck high or low, check if one of the two IR LEDs on the board is burned out.
- Use your cel phone/digital camera to see if the LEDs are lighting -- the wavelength can't be seen by the human eye, but can be seen by a digital camera.

5. If one of the data lines is stuck high or low
and both LEDs are OK, the problem is probably either with a Red Board photodiode or the wiring.
- Swap X- and Y-axis Red Board harness connections.
- If the problem follows the harness connection, it's probably the wiring.
- If the problem doesn't follow the harness connection, it's probably the Red Board photodiode.
- If the problem disappears, it may have been due to a poor connection earlier. Swap them back and retest.
Scott