Running the code on real hardware I have found some stuff

• Arduino Timer 0 shall be powered off before enter interrupt, otherwise it will wake up processor (and we don't want that)

  void loop() {
    do_N64(); // Sample  and Update Outputs
    digitalWrite(debugPin2,LOW);   // debug
    // put AVR to sleep
    set_sleep_mode(SLEEP_MODE_IDLE);
    sleep_enable();
    power_timer0_disable(); // Arduino keeps this timer running
    sleep_mode(); 
    sleep_disable();  
    digitalWrite(debugPin2,HIGH);   // debug
  }

• Button activation logic still still need some working
• I will probably have to use Timer 2 to modulate autofire

Working now to find why Timer 1 does not change the timeout value to 100 ms after the paddle interrupt service.