oOH man what to do .... what is C1E and SPeedSTEP ? and does these options are causing FanSpeed up-down ?
These are "power saving" technologies but work with processor utilization preferences.
For example:
When you run a demanding application, processor utilization may increase and it would be important for the processor to run at its
peak (stock) speed for optimal results. During this scenario, the aforementioned technologies will not interfere and would allow the processor to run at its peak (stock) speed.
However, when the processor is idle or inadequately utilized; these technologies clock it down to preserve power accordingly.
For detailed technical explanation:
http://www.intel.com/cd/channel/reseller/asmo-na/eng/203838.htm
Processors — Frequently asked questions for Enhanced Intel SpeedStep® Technology on mobile
For the CPU cooler fan-speed part;
Yes, its speed is influenced by temperature of CPU.
This is the logic:
Higher clock speed of CPU => Increase in CPU temperature accordingly => Increase in CPU fan speed accordingly
Lower clock speed of CPU => Decrease in CPU temperature accordingly => Decrease in CPU fan speed accordingly