I've been building both AutoPilots, and QuadraCopters, and I wanted to drive more servos and ESCs, with less jitter, so I used some ideas from the Paparazzi gang and developed a way to drive up to 10 servos with just 2 output pins from an Arduino or ATMega8.
The design uses just one chip, a Johnson style Decade Counter, and requires only two output pins from the Arduino. The Arduino uses one PWM pin (pin9), and one general IO pin (pin8). All the pulse are generated in sequence on the PWM pin, then spread out to the individual servos via the decade counter. The decade counter costs 63 cents.
Now I can build Hexa-Copters without having to use I2C ESCs, and still have servo outputs available for camera controls.