The new drive will be more senstive to errors in feedback so the encoder is possible.make sure that the idlers are shifting properly one time i was working on a machine with this error,it took a while to find but the in house maint. guy crossed up the air seal and high range air lines at the valve block. the machine would change ranges fine with an m3 command because the air seal would fire and change it,but with a range change in rigid tap there is no m3 command given so air seal would not fire and move the low range idler back.so if they were machining in high range then tap in low it would not change,the motor would skwak the belts and then give an error#7.so maybe you are having some sort of shifting issue.