kpowersave 0.7.2 in feisty now uses HAL for CPU frequency scaling and this should work now. If you still see this problem on feisty, feel free to reopen this bug.
** Changed in: kpowersave (Ubuntu)
Importance: Undecided => Medium
Status: Unconfirmed => Fix Released
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CPU Frequency Policy option disappears!
https://launchpad.net/bugs/82695
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