Looking for a replacement or way to fix my smoked turret encoder on the CHNC II

seems to be the same board as the one in this post:
forum.linuxcnc.org/30-cnc-machines/1276-...-lathe?start=18#2114

Your damage seems more extensive, looks like you need to replace both caps and the resistor beside it as well as the diode beside the four green resistors.

[edit]
A destroyed diode may also indicate that the board was hooked up with reversed polarity which may mean more damage to the LM324 and possibly even the hall sensors.

[edit2]
Also you may want to remove the worst of the burnt part of the pcb because that might give you issues due to insufficient isolation.

Upper right, are those 5 pins at the edge?
If yes, there was a voltage regulator once, god rest its soul.
the remains of a diode and i can not make out what the "to the left" part is.

It sure looks to me like those 5 parts are fibers of the board as it's delaminated on that edge. 
"to the left" Do you mean this thing? That's what I think was a cap, due the C1 label to the right end of that space.

Could you tell me which the are the "4 green resistors". Partial colorblindness here.
Oh, now I see it. Lower right diode.
 

Aciera, do you mean physically cut that part of the board away? 

Aciera, do you mean physically cut that part of the board away?

yes, after that you can solder the new parts onto the traces on the edges of the cut out areas.
If you want you can reconstruct the board with epoxy but you may want to get the board working first.