This option in the gconf-editor is not there anymore in Intrepid Ibex....has anyone figured out how to make the settings stick in 8.10?Now when you change settings using panel applet they will not 'stick'. They will change back to the default ondemand value when you reboot, switch to battery power, or switch to AC power.
To change these default values you need to open up the gconf-editor. To do that press Alt+F2 and type
gconf-editor into the run dialog. Now navigate to apps>gnome-power-manger>cpufreq. Here you can change the value of policy_ac and policy_battery to whichever governor you wish to be default for AC power and battery.