Hi. I had this problem before and each time I was able to fix it by moving the nut. But now it doesn't matter what I do. The encoder is rigid. No click or anything. With the cap off, the click works perfectly. Any ideas?

That's odd.  I asked one of our support people, and he's never heard of this particular behavior before.  But he said if you want to email support@eventide.com he could send you a whole new encoder for a reasonable price.