I just got the rotary encoder today from Ultimarc and hooked it up to some Ikari Warrior joysticks (LS-30s) using a normal IDE ribbon cable from a PC. It only seems to register a keypress after I click the joystick 4 or 5 times (or randomly), then it registers no more keypresses. I unplug the USB, then replug and it repeats the behaviour.

I have used notepad and Keyhook utilities to test it.
I got the same behaviour with a Druin's Encoder that I tried out before.
Is there a special way that you hook up that thing to get it to register keypresses consistently?
I ohmed out the joystick contacts and it looks like those joystick just use continuity between the middle pin and the outer pins to determine where it is. Each time you click it, the continuity moves to the next pin, with the middle pin apparently acting as the common.
Any advice would be apreciated.