So how's the encoder board going? I gave the 555 thing a try. Me no happy. :) Here's what happened.
They key point is that the waveform out of the QRE1113 breakout, fed by 3.3V, is only 1.8V peak on my robot. The 555NE I'm using won't trigger off that. My own Schmitt board has thresholds selected to work with the SFE QRE1113 breakout.
So how to make the 555 work? One can put a smallish capacitor inline to high pass filter the signal (converting it to AC, basically) and feeding it into the middle of a voltage divider giving it a 1/2 * Vcc DC offset. Even at only 1.8Vpp the 555 triggers. Cool.

However, there's a speed threshold below which you'll get no pulses. The threshold with a 0.1uF cap isn't too bad. For race purposes where the robot isn't stopping and goes fast, the missed pulses will be very few. For a very slow bot or one that stops and starts a lot, lots of distance will go unmeasured.
One can use a larger cap -- I tried a 47u, 100u and 200u. However, the 555 can get 'stuck' when the wheel stops. If the input voltage is low, 555 output high, then the wheels start turning, the 555 switches low and stays there. The only way to unstick is for input voltage to go high for a little while. Similarly, if the input is high and output low and stays that way for long enough, it takes several pulses before the 555 starts triggering again.
I will have to go refresh my EE memory a bit and look at what's inside a 555 to determine precisely what's going on. I may have an inkling, but as they say better to remain silent and be suspected a fool than speak and confirm it beyond all doubt. :)
I still like "my" board (I say my but it's really a design I lifted off the interwebs) even though I detest assembling them due to the many small passives. What I like is that the board pulses at all speeds. It has downsides of course. The waveform isn't perfectly square and if the sensor is at the edge of a stripe the voltage can be 'in between'. So I guess it doesn't actually behave as a "real" schmitt trigger, but it does (sort of) square up the waveform and it definitely amplifies the signal to logic levels.
Michael