I'm posting this for posterity because this thread has long since fallen off the front page.
I was wrong about the pronunciation of "Ye Olde". When it is used as a spurious indication of antiquity, the Oxford English Dictionary says it should be pronounced (jiː əʊld) or (jiː ˈəʊldiː).
Since posterity is for a long time, you should know that you were correct in the first instance.
The OED merely reflects the fluidity of the English language, even when that language picks up idiocies such as 'Ye' being pronounced 'ji'.
Thorn is a fascinating letter, and I'm glad you drew attention to it in your original post. Sometimes I wish English would begin to re-incorporate some of those old words, or (as in this case) a letter.
I was wrong about the pronunciation of "Ye Olde". When it is used as a spurious indication of antiquity, the Oxford English Dictionary says it should be pronounced (jiː əʊld) or (jiː ˈəʊldiː).