Arduino PWM only putting out 3.6Volts

johnwasser:
Your series resistor is WAY too small. You are drawing 145 mA (2.9 Volts / 20 Ohms) from a pin that has an absolute maximum rating of 40 mA!

Thank you! I didn't even think of that, the LED isn't even in the final project. I was just using it for testing of code, I grabbed a resistor out of the network and put it in series without even thinking about it but yes that was the reason.

On a note of the voltage, your right. I reversed them. The resistors only dropping 700-800mV, and the LEDs dropping the rest. I'm not sure why the led is dropping so much, perhaps because the resistor was so low.