Jay HHI6818 , You are correct, I called T/C about 3 years ago and talked to the tech and he told me it was OK to use three triple 7 pellets or 120 gr. of loose triple 7. If triple 7 powder is used it has to be reduced by 15%, which is 120 gr. by volume. Triple 7 pellets have been reduced by 15% by the factory already. If they say you can use 2 triple seven pellets in a muzzleloader, they are talking about all muzzleloader's, the Encore is listed as a magnum and there for can use 3 triple 7 pellets. They just don't list for all muzzleloader, it is up to you to check with your muzzleloader manufacture to make sure of the load capability.
Here are some examples I have found. When I shot 2 triple 7 pellets my point of aim was the same as 90 gr. of loose triple 7 powder. Actually 15% of the 100 gr. of triple 7 pellets is 85 gr. but I found 90 gr. to match better. The velocities were very close also. When I went to 3 triple seven pellets, I found 120 gr. of triple 7 powder was giving me the same velocity and point of impact as the 3 triple 7 pellets.
The reason I use both pellets and powder is, when hunting my first shot is loose triple 7 powder and my speed loaders are loaded with pellets. When I am at the range shooting I use the triple 7 powder 95% of the time, I also shoot the pellets to make sure nothing changes on my point of impact.
Your best bet is to call T/C and Hodgdon and get it from them. Like I said before, I have been shooting 3 triple 7 pellets in my Encore for 3 years now and never encountered any problems what so ever. I just listened to what the tech told me.