An easier way to think about the PWM resolution is that the duty cycle can go from zero to (PR2+1)*4 so for the best resolution use as large a value as possible in PR2 and use the prescaler to adjust the frequency.
The reason the resolution decreases is because the duty cycle is compared to timer2 and timer2 resets when it matches PR2 therefore any value greater than PR2 will result in 100% duty cycle.
An easier way to think about the PWM resolution is that the duty cycle can go from zero to (PR2+1)*4 so for the best resolution use as large a value as possible in PR2 and use the prescaler to adjust the frequency.
The reason the resolution decreases is because the duty cycle is compared to timer2 and timer2 resets when it matches PR2 therefore any value greater than PR2 will result in 100% duty cycle.
It took me a while to suss out the pwm module, perosnally I found the datasheet very difficult to understand.
Theres a couple of websites that explain its operation well.
Some pics you can define the o/p of the pwm to a choice of pins.