Some questions about your latest code posted.
I can see where you are changing the value of paddle1Val based on getting an "up" or "down" command from the user.
Couple of things. What is the valid range of values for paddle1Val? How do you want these to relate to the position of the three bit paddle in the 16 bit column?
And if the user keeps sending an "up" command, for example, I can't see the code to stop the paddle going too high out of range.
All the best
Ray