was able to compile this latest sketch but haven't had a chance to put it in the board yet.  here it is if anyone wants to give it a try.  we won't know if my logic all works until it's on a board but having it compile is a good step forward indicating my arduino is coming along.  
if/when it works i'll have completed boards in my webshop for purchase.
/*
 LED control using jDrones ioBoard and inputs from 
 RC receiver (PWM)
 PWM signal pulses are measured using 'pulseIn' statement 
 Conditional statement looks at PulseIn value and determines 
 *****illumination pattern of LED outputs*****
 illumination alternating left/right indicates manual control
 coordinated heartbeat indicates GPS position hold
 rapid flashing indicates come-home mode active
 Created 26 March, 2012
 By Bartman with help from the Arduino community.
 This code is in the public domain at
 
http://www.multirotorforums.com/sho...roller-jdrones-ioBoard-hack&p=92148#post92148
 
*/
void setup() {
  // pin numbers for inputs and outputs
  unsigned long Duration;
  unsigned long lastgood1;
  int rxGPSmode = A1;      // input pin using GPS mode channel from Rx
  int ledPin1 = 2;       // pin for left LED output, PWM enabled
  int ledPin2 = 3;       // pin for right LED output, PWM enabled
  int ledCounter;     // counter variable used to loop LED patterns
  int ledBrightness;  // brightness variable for heartbeat pattern
  int fadeAmount = 25;    // factor used to build light intensity in Heartbeat pattern
  pinMode (rxGPSmode, INPUT);  // initialize Rx connection pin as in INPUT
  pinMode (ledPin1, OUTPUT);   // initialize the LED pins as outputs
  pinMode (ledPin2, OUTPUT);
  
  
  
}
void loop() 
{
  static int Duration;
  static int rxGPSmode;
  static int lastgood1;
  static int ledPin1;
  static int ledPin2;
  static int fadeAmount;
  static int ledCounter;
  static int ledBrightness;
  Duration = pulseIn(rxGPSmode, HIGH, 20000); //read GPS mode channel
  if (Duration == 0) {Duration = lastgood1;} else {lastgood1 = Duration;}
  if (Duration < 100){
  // alternating arms flash slowly----->GPS off
  digitalWrite(ledPin1, HIGH);   // turn the ledpin1 ON (HIGH is the voltage level)
  delay(1000);                   // wait for a second
  digitalWrite(ledPin1, LOW);    // turn the ledpin1 OFF by making the voltage LOW
  delay(100);                    // brief delay, to make blinking appear uniform throughout subroutine
  digitalWrite(ledPin2, HIGH);   // turn ledpin2 ON
  delay(1000);                   // wait for a second
  digitalWrite(ledPin2, LOW);    // turn ledpin2 OFF
}
else if (Duration > 1200)
{
  // LEDs flash quickly for three seconds then exit loop to recheck conditional
  // GPS come home mode active
  //
  for (int ledCounter = 0; ledCounter < 9; ledCounter = ledCounter +1) {
  ledPin2 = ledPin1;             // ledpin2 set equal to ledpin1 to coordinate illumination pattern
  digitalWrite(ledPin1, HIGH);   // both LED pins turn on
  delay(300);                    // wait 1/3 second
  digitalWrite(ledPin1, LOW);    // both LED pins turn off
  delay(100);                    // wait 1/3 second           
}
}
else
{
  // heartbeat pattern, GPS PH active
  ledPin2 == ledPin1;
  for (int ledBrightness = 0; ledBrightness <= 250; ledBrightness = ledBrightness + fadeAmount) {
  analogWrite(ledPin1, ledBrightness);
}
  analogWrite(ledPin1, 250);
  delay(250);
  digitalWrite(ledPin1, LOW);
  delay(250);
  digitalWrite(ledPin1, HIGH);
  delay(500);
  digitalWrite(ledPin1, LOW);
}
}