COOL! 
So what was the final verdict on the 49-way stick thing from randyT? I was following that thread, but it go so out of control I got lost. Did they ever figure out how to play 720 and how do you set it up to play rotary games? I'm thinking of using these instead of my Happ's Optical rotary sticks.
I've never played with optical rotary sticks, at least not since I played Cal. 50 in the arcade many years ago. I don't know if I would ditch those things just yet. The rotary emulation in Mame seems imperfect, IMO, since it doesn't officially support one button=one turn in those games just yet. I have yet to fully test this implementation in Analog Mame, but initial testing also seemed imperfect. It's possible your optical joys may give more consistent results in Mame, since that is how the official build is set up to receive inputs for the rotary games. Also, Cal. 50 is a fun game and you can probably use those optical rotaries for other spinner games like Off the Wall and Puzz Loop.
Otherwise, the final verdict is still out for the list of fully compatible games with the 49-Way joysticks with RandyT's encoder. One thing that has bugged me a little so far has been the sticks slow return to center. RandyT and others say that this will get better with use, as the rubber grommets will break in. I can't say, but I did play Atomic Bomberman, the PC game with these sticks in 4 way mode and really noticed that your bombdude will continue to walk if the stick doesn't return to center with a decent spring. This led to a lot of mishaps in a game where every twitch counts. I also don't like these sticks for fighters, too squishy, which, again, could change with use. Luckily, as you would imagine, RandyT's encoders will work with microswitch joysticks perfectly, since each joystick just needs four microswitches to function.
Hope that helps, let me know if you need more info.
Cheers,
KenToad