It looks like the easier route for me to go with this is to buy a couple of Oscar's optical sensors, and hook them to the USB Mouse Interface I already have for my DOT Spinner.
I stripped the optical sensor off of that spinner, foam taped it into the base of the Atari trackball, and it works great.
I don't have two of the sensors, so I couldn't check BOTH directions simultaneously, but the factory encoder wheel on the Atari seems to be very compatible with Oscar's sensors.
That's not overly surprising, in that Happ licensed the design from Atari, and their current trackballs are still using similar parts.
Hacking the iBall sensors to this isn't really worth the time to me.
Oscar's sensors are only $7.50 ea., and it would take me a good couple hours to do the iBall hack.
Given that I already own everything else needed, that is the route I'm going to go.
The one other problem I see with this hack is that I'm going to have to cut slots into the CP, or use some kind of standoff, so that the encoder wheels will clear.
The encoder wheels on the Atari stick up about 1/2" above the top of the base.