Hey nice one! =)
Thanks for the info.... i will give this a whirl now, makes sense.
I figured out there is a neat little gnome applet that monitors the cpu speed so i a giving this a go.. Strange thing is the value in /proc/cpuinfo does not seem to change in this build (even after activating 'ondemand' and putting a full load on the CPU.
Another strange thing is that even though 'userspace' is the default governor the cpu monitor in gnome indicates that the speed is increasing/decreasing (much the same as the conservative governor would)... there must be a userspace program controlling this.
Its all good - seems to work quite well actually