Can you post a picture of your setup, and having another controller will help to debug the issue. Also the voltage to the controller must be 3.3V and NOT 5V.
I have 3 different playstation to arduino libraries, and Im not sure which one was from Bill Porter, but let me check. I the mean time, can you post a picture?
Added: found it. Pay CLOSE attention to the wire pins, 10, 11 and 12 are swapped. (13,11,10,12)
You need to add a 10k ohm pull up resistor to the data line and a in line resistor to each of the lines that are connected to the pins on Arduino (except for the data line). Also I used 5v and it works fine.