Um, there is an problem with the silicion which is mentioned in the errata. Which means you either have to run the pic at full speed or use the same oscillator. If you use the clock out I'm not sure wither it will be insync enough to work properly.
You can just connect the clock osc2 from the enc to the osc1 on the pic. I think that should work, although I may have got the pins back to front just from memoy.
Ian
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