Hi,
As far as getting more resolution from the PIC processor, Your out of luck.
So, Microchip themselves and previous posters in the this thread (Darrel, Bruce, Norm) are wrong then, what am I missing?

When using the CCP module in PWM mode it's limited to 10bits resolution. But if you use it in compare mode, the way that the application note describes you can get 16bit resolution but:
1) You won't be able to get 100% dutycycle
2) The maximum output frequency will be limited to ~122Hz @32MHz.
3) You'll get some CPU load from the interrupt processing.
4) You need to deal with assembly code in the ISR (or deal with more "CPU load" if using DT-Ints)

/Henrik.