arduino and ppjoy protocol - arduino as joystick ?

Not sure if this is the problem, but in yr code joyYvalue is an int, not a byte, try the following

void loop(){
byte joyYvalue=analogRead(joyPin) / 4
if(joyYvalue > 0xEF)
joyYvalue = 0xEF ;

Serial.print(0xF5);
Serial.print(0x00)
Serial.print(0x80);
Serial.print(0x80);
Serial.print(0x80);
Serial.print(joyYvalue);

delay(100);
}

p.s. sorry I missed yr earlier reply to my post. if you still need some code to generate PPM then let me know.