In order to get the correct pulse counts at high speeds, you should use a 1746-HSCE2 high speed counter card. You will have to get the tech data for your encoder to determine if you will need pull up resistors, whether the outputs are pnp/npn, etc. (some encoders have internal resistors, some do not) You will need this info to impedance match your encoder to the card using the cards tech data compared to your encoder data sheet.