Hi Dave
I agree it depends on the level of glitches you are willing to put up with. I have done what Ken describes with a PIC in a single loop. The call to read PWMs is one element. Sensor analysis is other.
I don't use an interrupt on the lower level PICs. I simply read the mode channel PWM. If it is below some value I jump to manual, if above then to auto. Very simple.
I do much more in the dsPIC which actually interrupts every PWM pulse, but that is way beyond what Ken is talking about. Without interrupts on a mid-range PIC, the throttle will seem a little sluggish in response to changes, this is due to the fact that it is being sampled at less than its normal 25ms rate. But this really isn't a big deal for an RC car. Same is true with steering.
I would think that the sensor calls would only be in auto mode. So no real impact to manual response times. All depends on the details of what Ken ends up doing. I think a simple start is best. There is a big learning curve.
John
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