Also, is there a quick way that I can change the pwm frequency to 1Khz, instead of 256? Thanks.
change t2con=7 to t2con=5


I still need to be able to use the 1/0 button as a single shot
button where pressing once shuts it down, as you have it, and pressing it again turns it back on with full pwm and level 5 selected, without the 1/0 button looping
I cannot interpret that request at all
do you mean
a single shot , turns it off and it stays off until reset [the real meaning of a single shot]
or
a toggle , turns it off if its on and turns it fully on if its off [ like an on/off .. 0/1 switch]

You mentioned a finite machine
no a finite STATE machine , google it (p_level could be the state )