Yes, it can, mod-bus scans at 10 times per second, (per what Art told me while doing some other things).
If your encouders are "slow" less than 7k, you can use the inputs on the native 06. If they are faster then you need the ctrio module ($195.00). The module will do ONE quad encouder, or 2 single channel encouders. You send your counts to a holding registar as a word. Have mach pick up that word in the 2cd input channel (64+). Use your Macro pump (also according to Art runs at 10 times/second), to VB in some GetInput(x), and drop the word into a user dro for display.
Scott