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Great idea, I have built many 328p layouts without all of the arduino real estate. However, with off board power supply, I would recommend a capacitor on the VCC pin to ground for stability.
Hi Simon, I just recently acquired some EC11 rotary encoders and apart from wiring the middle pin to GND they work well with your code. I would be interested in a h/ware + s/ware approach to limit the processor workload. Nick Gammon is a brilliant experimenter in this area. Accolades to you and all the other gurus that inspired this Instructable
Excellent start for a new experimenter in electronics. I would suggest a simple schematic would aid the understanding of the wiring logic. Particularly if the images showing the connected parts on the breadboard are not sharp.Also I'm sure some people might not understand the following sentence for LED connection. "Now connect the led short lead onto the black line and the short side to the middle of the board."Perhaps mention the long / short wire polarity and also the relationship of the flat edge on the LED that also defines the polarity. There are so few articles like yours that bring new people into electronics.