We demonstrate a flexible modulation and detection scheme for upstream transmission in passive optical networks using pulse position modulation at optical network unit, facilitating burst-mode detection with automatic decision threshold tracking, and DSP-enabled soft-combining at optical line terminal. Adaptive receiver sensitivities of -33.1 dBm, -36.6 dBm and -38.3 dBm at a bit error ratio of 10(-4) are respectively achieved for 2.5 Gb/s, 1.25 Gb/s and 625 Mb/s after transmission over a 20-km standard single-mode fiber without any optical amplification.