One more quick question, do I need to connect the Green (ground??) wire coming out of the Happ trackball to something? Or is it safe to leave it unattached?
Green wire is a chassis ground designed to keep static from the spinning ball from affecting the electronic circuits.
I have seen posts saying you could leave it unconnected.
If you do connect it, you want to connect it to earth ground (i.e., the metal case of the computer or better yet, the lower prong of the AC line into the Power Supply or the ground cable at the wall socket, not the GND terminal on the encoder).
Although shouldn't the GND terminal on the encoder feed back through the PS, which then goes to the lower wire GND so it does the same thing either way???