Set CPU Governor settings

"The CPU Governor drop down box contains a list of CPU "governors" that the phone can use. Available governors will vary with your specific device and kernel. The Performance governor, called "Always Max" on previous versions of SetCPU, allows your phone to run at maximum speed, ignoring all power saving functions. The "ondemand" setting is default, and scales the phone between the maximum and minimum speeds. On some kernels, the "conservative" governor is also available. The "conservative" governor ramps up the CPU more slowly than the "ondemand" governor, leading to slower responsiveness but better battery performance."

 

I believe it is currently useless because it was created so that apps could have a defined cpu speed. Meaning that one app that needs a lot of power could be set to run at 1ghz while another app could be set to run at 550mhz. Don't quote me on that part though.

 

Here's the developers page (which is what ^ is from):
SetCPU

That being said I found that 'conservative' is a much better setting. Much better battery and the processor actually scales according to load. With the 'on demand' setting any little load ramped it to the MAX frequency instantly and it would virtually never go down...