Are these Timer/Counter settings right for PWM generation?

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Hi, I have been trying to understand how to use timer/counter manipulations in order to generate a pwm of a desired frequency. I have to output a 125kHz square wave from th arduino. Can someone show me how?
What mode to select, what values to set (ICR1 or OCR1A/OCR1B), any calculations involved? I would highly appreciate it.

Also, I need to be able to measure the duration between the consecutive pulses in the middle of the pulses rather edge to edge. I need some inputs people. :confused:

Please have a look at the code snippet.

// put your setup code here, to run once:
  //DDRB &= ~(1<<PB0);//pin 8 input //ICP1
  //DDRB &= ~(1<<PB1);
  //PORTB |= (1<<PORTB1);//PORTB Input Pullup

  //DDRB &= ~(1<<PB
  //pinMode(9, OUTPUT);//oc1a
  //DDRD &= ~(1<<PD2);//portd pin2 input
  //PORTD |= (1<<PD2);
  //pinMode(interrupt_pin,INPUT_PULLUP);

  //pinMode(dataIn,INPUT);

  pinMode(PB1,INPUT_PULLUP);
  Serial.begin(115200);
  //attachInterrupt(8, rising, RISING);
  //delayMicroseconds(1000);
  Serial.println("AVR Initialization");
  delay(50);

  

  //Serial.print(buffer_in);
 
  
  cli();

  //Timer 1 interrupt at 125kHz
  //TCCR1A = 0;
  //TCCR1B = 0;
  //TCNT1 = 0;
  ICR1 = 63;
  //turn on CTC mode
  //TCCR1A |= (0<<COM1A1)|(0<<COM1A0)|(0<<COM1B1)|(0<<COM1B0)|(0<<WGM11)|(0<<WGM10); //normal 00//toggle 01//low level 10//high level 11
 
  //TCCR1B |= (1<<ICNC1);
  TCCR1B |= (1<<ICNC1)|(1<<ICES1)|(1<<WGM13)|(1<<WGM12); //FAST MODE - 8 bit Mode 5
  //Set prescaler 8 
  //-------> no prescaler - CS10 - 1; 64 prescaler - CS11, CS10 - 1 <-----//
  TCCR1B |= (0<<CS12)|(0<<CS11)|(1<<CS10); //256 prescaler

  //OCR1A = 127; //[(16000000/(125000*8)] - 1//top value 8 BIT
  //OCR1B = 63;
  //ICR1 = 63;
  //TCNT1 = 0;
  //enable timer compare interrupt
  //TIMSK1 |= (1<<ICIE1)|(1<<OCIE1A)|(1<<TOIE1);
  TIMSK1 |= (1<<ICIE1)|(1<<TOIE1);
  sei();