yeah i ended up replacing the heading hold microcontroller someone made with a PID

Not sure how that would work actually, since the controller is designed to minimize lateral velocity of the vehicle rather than smooth out control inputs. Sounds more like the PID you're using just needs to be tuned a little better for your vessel and it shouldn't move the rudder so much.

would this work to dampen the inputs of a heading hold microcontroller on a ship? the heading hold currently wiggles the rudders back and forth

Sounds like they aren't really fighting, they're both reacting correctly to the data they're being given, and since the slip data for the yaw damper is flawed it results in a flawed output. You could probably replace the linear speed sensor with a wind sensor oriented right side up pointing forward, and taking sine of the angle from the wind sensor and then multiplying that by the wind speed and then just plugging that result where the speed sensor is now.

In 0 wind theres no problem. But when there is wind, the fight for control starts. Its not a big problem really, but in case of priority, heading controller takes precedence and thus yaw dampner is turned off in windy conditions

The yaw damper should never be acting with or against the heading controller in 0 wind conditions, because they work on 2 completely independent axis'. What exactly are the conditions that cause problems, and what exactly is it doing when there is a problem?

So far, your heading controller works as intended. I havent had any problems with it so far. Your yaw dampner has been in a few fights with the heading controller, however this problem is mitigated by simply... turning the yaw dampner off

Most of the issues from wind come from the fact that my old systems don't use wind sensors, so they measure your speed across the ground rather than your speed through the air. Unfortunately, due to how stormworks physics works, even using wind sensors in my new system didn't fully solve that problem, although it is a little better. The yaw issue was solved with the wind sensors, but the heading controller still struggles since the wind keeps turning the aircraft.

Yeah i noticed this yaw dampner dont really agree with any type of wind. I find your heading controller and yaw dampner fight over the direction of the aircraft quite a bit, but then again, this is all old creations.

I wasn't able to get it to work but it seems cool!

No, this only controls the rudder, and unfortunately it doesn't work very well in wind. The new version I'm working on does actually account for wind. For roll control I also have a heading controller which has a built in basic roll stabilizer for when the autopilot is disabled.

Can't wait to try. Would be so lovely to have. Does it work for Roll too?