Programming the for PWM for 60hz and getting a 7.5% duty cycle.

If that shouldn't work:

pinMode(9, OUTPUT);
pinMode(10, OUTPUT);
TCCR1A = (1<<WGM11) | (1<<COM1A1) | (1<<COM1B1);
TCCR1B = (1<<WGM12) | (1<<WGM13) | (1<<CS11);
ICR1 = 33333;      // (16MHz/8)/60Hz=33333
OCR1A = 2500;    // 33333*0,075 = 2500

This should produce 60Hz, 7,5% duty cycle at pin 9 and 10, but this code isn't tested.
I'm using the mode 15 from the datasheet (page 136):
http://www.google.com/url?sa=t&rct=j&q=atmega328p%20datasheet&source=web&cd=1&ved=0CCEQFjAA&url=http%3A%2F%2Fwww.atmel.com%2FImages%2Fdoc8161.pdf&ei=enBYUI6oGY7itQbZ9YG4AQ&usg=AFQjCNFcwQZ1S5ZXKLGwKQ_u54ggN55CkQ&cad=rja

Greetings,
DaDrivel