In cases like this, I usually like to backtrack and try to localize the problem down. Especially since I don't know what program you are using...
1) You said you tried out the PS2 remote and receiver on a PS2 and it worked. So the hardware part sounds like it is working.
2) Try to see if a Simple PS2 program works with it. Something like what is in the tutorial: http://www.lynxmotion.com/images/html/build034.htm
2a) If it does not work, what is the outputs shown on the screen. Is it valid data or all 0's or 255s? If it is valid data, and still blinking, it says that receiver is at least working well enough to talk to the BAP, if it is all 0's or 255s, than it is not talking.
2b) If it is not talking correctly, than need to double check things like:
a) Is the PS2 correctly installed into the PS2 cable. I think it is hard to do, but is it plugged in upside down...
b) Check how the wires are plugged into the BB2. On most of the cables, I believe that there is a brown wire on one side of a 4 pin connector. Is that plugged into the P12 on the BB2? Also is plugged into the IO pin (the ones closest to the center of the board). Is the power and ground pins connect properly. Is the power pins for that group of IO pins configured for +5v and not VS.
c) Sometimes it helps to remove the 3 jumpers/shunts above the speaker that connect to the three LEDS and buttons.
d) if the PS2 is not talking at all, check to see if the IO pins are working... Could run a simple program like:
i var byte
for i = 12 to 15
Warning this code was typed in on the fly so could have bugs...
If in this step you have the 3 jumpers installed that I mentioned in c) the three LEDs should go on and then off... This will show that you can talk to P12-P14. Won't show P15. However if you have a Servo extension wire or other like jumpers you can remove these jumpers, and use the extension cable, by plugging it into 3 pins, like P13-P15 and plug the other end into the upper row on pins where you removed the shunts from(nearest the buttons). With the above code and if you did P13-P15 with the cable, you should be able to verify now if P15 works as well... Note: several of us use this trick of bumpering some IO pins to these pins to help debug code (or hardware).
There are probably lots of other tests you can do, but these should help to localize what to do next.
Before I start with my programming trials, I wanted to say that I used a DMM to perform a continuity test on the IC. I tested from each pin to it's associated socket on the bottom side of the board. Everything checked OK.
2) So I followed the direcitions which the link provided. I wrote the code to the card, and programmed it declaring it as a BBII and version 18.104.22.168.
2a) What I saw matches Figure 2-1
in the tutorial. I still had the same status indicators as before; On the reciever a Solid Green (Left LED) and a flashing Red (Right LED). On the controller the left of the two LED's was a flashing red, and the right most LED was off. I still could not establish a connection. When I moved the analog's or pressed any digital keys I had no response from the program, and my numbers remained the same.
I also tried the program you wrote in 2d, and my BBII LED's would flash on/off in a sequential order. Looking at the code that seems what it's supposed to do.
From what it seems based on what you've said and I've seen; the PS2 reciever is talking to the robot, but I just cant get the controller to sync with the receiver.
So any ideas from there? Should I mail you the robot and controller? If so what's that general procedure, and is it listed on your site?
Again, thanks for the help.