Yeah, I spent whole day trying to remove that delay() from Arduino and Processing code. On Arduino side I got down to 3 millisec, but on Processing side I am still at 900 millisec.
The code you advised me to have a look at, is using delay as well, albeit only 10 millisec. It seems that some delay is unavoidable. Some people reported finding 20 millisec built into Serial.h library.
I decided to try to cut down the length of commands. Currently I am using something like this: "servox 1500\n". So I think to try to convert this into: "xBB" or "yBB", where BB would be integer defined with two bytes. That would be enough to cover 700 to 2200 microseconds range that is needed for PPM signals to servos.
Will be back 