Ok, here's a little summary of CnQ:
When activated, CnQ will raise and lower the speed of your processor to optimize it's usage when needed. This means that if you are running few or no programs your processor's speed will drop dramatically to decrease it's power consumption as well as the heat generated from the use.
Or when you are using a lot of programs, the speed will increase, resulting in more power being used as well as more heat generated. It's a very simple process to understand really.
That's why when you checked the speed of your processor it was recognized so slow, because it only needed 1000mhz to be able to run what you had open.
As far as the power management options, all they are are a bunch of predetermined and adjusted settings for different levels of usage and power consumption of your computer. Home/Desktop usage will usually have settings to put the computer into hibernate mode and shut off the hard drives and monitors in order to make the PC quieter and use less energy. the Always on feature will elliminate shut downs of different parts of your computer in order to allow you to use it all of the time.
That's all I'll say about that stuff. It's really very basic.