The Arduino itself only operates 5v (or 3.3v on some clone boards). The PWM will always only output that voltage (or something very close to it, depending on loads, etc.) when it's "on".
If someone is supplying 10v, they're probably talking about pre-regulator; not running the whole board at 10v. And, they're probably using a transistor on the output of a PWM pin to switch that "raw" 10v, which is then supplied to the driver. That's basically what I'm doing, but instead of relying on having a 10v source that's well regulated, my shield uses the Vin pin (which is upstream of the regulator) and has a 10v regulator to supply the signal for the ELNs. It's a VLDO regulator, so you can use anything above about 10.5v on Vin and it'll work. Arduino Duemilanove boards call for a "recommended" range of 7 - 12v input and a maximum limit of 20v, so you'd basically want to use 10.5 - 12v input.