jecalderon:
Ok.. The 255 steps from the fact that 0 counts as one of the allowed values which total to 256?
The values total to 256, so as zero is included, you only have 255 steps "on". So the counter must be counting 255 steps, not 256. Each one of those 255 steps might be on or off, a zero PWM value means all are off, and a 255 PWM value means all are on. But there cannot be a 256th step in the count.
raschemmel:
It sounds like you could benefit from reading this .
Tells you about which timers do what, but not how they count. That would be in the 328 datasheet.