Thanks everybody, ok here's some more details
The processor is actually a flexlogix, with an ID2 encoder card. Even though the processor is a 32bit machine this particular card is only 16bits. There is a Rockwell Knowledge base tech note showing how to configure the output to produce 65000 cnts but that's still not enough.
The total travel of my application requires around 1million counts. And it will travel backwards and forwards so what ever i do i need to count up and down.
Anyways what i have tried is a cascading technique to trigger another counter at 10,000 counts and reset the encoder card. The reset is to slow and we loose about 3000 counts
The next thing was to try and capture the count at 32766 but as expected the count is moving to fast and we miss this from time to time.
I did try a pulse multiplier attached to a totalizer function block but it wouldn't count backwards very good. missing counts and stopping. Although going forward it worked awesome.
I did not try an event task, and this may be a real interesting option. I know that the event will trigger on an external registration mark so it better be fast, but i wonder how it will work on a tag like the encoder output.
Gerry is right i did post on the Rockell forum as well and i received and interesting response. Basically it's the same idea as the Pulse Multiplier / Totalizer, and guess what it also gave me grief going backwards.
Here is the link to that forum
http://www.software.rockwell.com/forum/rslogix/messageview.cfm?catid=14&threadid=9830&forumid=3