A0 and A2 must be grounded... and that's not all I need to read A0 and A2
I don't quite follow this statement, I didn't think these were the pins you were reading? I thought you were reading 1 and 3? You haven't connected the ground pin of each pot to A0 and A2 respectively have you, with the other pin going to 5v?
I find it strange that you think you've found an issue with the microcontroller, with such a simple circuit... Like you say, post up the schematic - there must be something wrong. 