No one is getting my point... I'm experienced with hardware PWM chips... and I've never seen a setup like what pic's seem to have...
I'm very aware that the pwm cycle frequency comes from a timer... I believe i have demonstrated this knowledge...

It's one thing to say 'yes this is what will happen'... what i want to know is why?
WHY would the resolution change with different input frequencies?
If the hardware is 10bit resolution then it should always be 10 bit regardless of input frequency...