Recommendations:
Use 5V instead of 3.3V on this chip. When I used 3.3V readings were unstable but 5V readings are very stable.
Please choose your magnetic strip carefully. The magnetic strips which were sent by www.digikey.ca along with this chip were not working properly. I had to order new magnetic strips from a different company and it worked like a charm. When chip is mounted correctly and magentic strip is parallel to surface of AS5311 chip at a proper distance you will not get these errors "LIN, INC, DEC, COF, OCF". Please read datasheet for more details.

Features:
Tested against a highly accurate dial gauge. Accuracy was within +-10 micro-meters.
Fastest library available for AS5311 on GitHub.
Implementation of theoretical three pole system for easy linear distance calculation.
Dynamic Zeroing feature :P. It will zero the readings and calculate offsets automatically. Very helpful if you are designing a product.
Most Arduino boards are supported. Could be easily modified for other microcontrollers like PIC, etc.

Please let me know if there are issues.