quadrature endcoder woes?

I just installed a US Digital encoder (E4P-300-250-T) on a motor. It
was a royal pain as the centering tool was pretty tight on the motor
shaft and then the centering tool was quite tight on the PCB when I
pressed it into place.

With my motor running at a constant 1 rpm, I get the following scope trace:
http://www.bright.net/~agarb/quad.jpg

I've never looked at a quadrature encoder pulse stream on a scope
before. Is it just my imagination, or is this much to noisy?

I have encoder and motor leads separated as much as possible.

Aaron