There are two speed routines in the plugin, the standard is 10htz, update time, there is a "High speed" function that can call at 40 htz, (for small fast code only). NOTE: if you not having your encoder go striaght to the PP driver. Then you will need to have one or two, or both things: a tick timer sent from your hardware, (that will help smooth your encoder), and/or perhaps spin off a thread that runs on its own to capture and buffer your encoder and when mach gets around to its 10hrz loop have it get the data then.....
down load the "Universal" plugin template in the finished plugins, and try it with your settings like you discuss above.
scott