This is exactly what happened to my new Omni VII, back in July 2014.  
Sent back to TenTec, and they replaced the encoders.  That fixed the 
problem for a few hours, because TenTec didn't at that time realize then 
that all the encoders they had in stock were bad. Back to TT a second 
time, and they replaced the encoders again, but with a different brand.  
That fixed the problem.  This problem occurred with many (all?) of the 
Omni VII rigs being manufactured at that time.  TenTec had received a 
bad batch of encoders which were being incorporated into the rigs being 
manufactured then.
    Good luck,
            73
                    Darrel, aa7fv.
Anyone have this happen before?  While using the radio the control started
getting stiff, then is close to being completely frozen in place. The push
button function (change between AF or RF control does not work at all. Just
stuck in the RF control function.  I am guessing it is just a new part from
TT to swap it out.
Radio is fully functional all other ways.
Doug N4IJ
 
 
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