Try searching for 'DRO digital readout' and see what affordable options you
come up with. If you insist on building your own, take a look at the
microchip PIC line. some of the 18F devices have the quadrature decoders
built in.
Otherwise, look at the www.lsicsi.com and look at the ls7084 series
quadrature decoder that converts from A quad B to pulse and direction.
Another version does count up and count down.
That should point you in the right direction.

"Rob / gompy.net" wrote in message
...
Hi, I'm looking for a up/down incremental encoder to use it to my mini
mill.
I'm using for now a ICM7217, but this part is out of production.
Maybe someone can help me with a pic encoder/counter simulair like the
ICM7217 ?
Schematic http://www.test.gompy.net/icm7217.jpg

Thx, Rob