Micrologix1200 Encoding

Gentlemen (includes ladies);
I am looking for some help on my latest project. I want to use an encoder to get position and then use the PLS function to make certain actions happen from that position. I am reading all the stuff that I can get. I currently use AB845H Encoders, but have access to others. O.K. Now to the real question. I am not running at high speed and only require a minimal accuracy of around 1 degree. What should I use for an encoder?
Second pleading. Does anyone have a small program that I could look at for guidance. I am vary familiar with programming on the SLC platform (no HSC or encoders).
Any help will be greatly appreciated

Connevr channel A to 0 input, channel B to 1 input, and , if used reset output to 2 of PLC.
Then go to I/O configuration and change input reaction time to 0.25 us (the minimum one) for inputs 1+2 and 2+3.
Then built your ladder with counters ....