We use the original Flex Motion VIs written by NI.
Our encoder is a LIDA 171C. I think that our problem has to do with the signals.So we have only 1 m cable length at this moment, we do not use an amplifier. But the two wire cable has an 120 Ohms load and we use the inverted Ua1 and Ua2 signal and for Index the inverted Ua0 output.
I'm quite sure that our hardware interface generates the same signals as described in your schema.
One difference to the example given by NI is, that index level is already low if A and B signal is getting low and stays a little longer at low level. In our case (Heidenhain) the inverted Ua0 is only low exactly at the same time that inverted Ua1 and Ua2 are low. If NI-7334 triggers at high low transit of A or B, it might mi
ss the information of Index input.
I do not know about zero mark at the rotary systems of Heidenhain, but I think they have a narrow pulse too, lasting only a quarter of pulse length of A signal period.