Xbox wireless pad,processing and PWM

If the code is all that simple, post it here. If it isn't, create something simple that illustrates the problem, and post that here.

But there is some glitch - LED have only two states - on and off. I'd probably messed input/output data types (HEX/DEC) and I can't find way out...

More likely, you are trying to use a pin that doesn't support PWM.