The latest kernel has a cpufreq kernel driver that is enabled by default. It has no effect if you have no overclock settings.
But when you do, the arm frequency will vary with processor load. The "ondemand" governor is the default but it can be changed.
This is quite a good description of what a cpufreq driver does:
http://www.pantz.org/software/cpufreq/u ... linux.html
If you do have e.g:
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arm_freq=1000
over_voltage=6
core_freq=400
gpu_freq=300
sdram_freq=500
when cpufreq pushes the arm freq above stock (700), the other "turbo" settings will kick in.
When the arm returns to idle, the "turbo" settings will be disabled.
This should mean less heat and less risk of reducing the chip's life, with most of the performance benefits of the overclock.
If you don't like the new behaviour, you can disable it with:
You can also reduce the stock settings with:
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arm_freq_min
gpu_freq_min
core_freq_min
sdram_freq_min
over_voltage_min
if you would like to underclock.
Latest firmware also has:
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/opt/vc/bin/vcgencmd measure_temp
temp=48.7'C
We believe up to 85'C should be okay.
Please have a play, and report back how it works.