Here are the SetCPU profiles that I am currently running with Drew's CM7:
First, my default is overclocked to 806 max, 122 min, interactive governor. This is about the best my phone can reliably handle. I don't use the smartass governor at all with CM7 because music playback suffers for me. Some phones can be overclocked higher than 806, some cannot reach 806, so your results may vary. Also, some phones have difficulty waking quickly from sleep at 122, but mine does not, so my minimum is always 122. From the last picure, you can see that my phone spends 90% of its life at the lowest clock speed.
Second, unlike KSmith my highest priority profile is screen off, not temp. Why? because I have my screen off profile settings lower than my battery temp settings. If my battery is running hotter than the profile temp, and my screen is off, I'd rather it choose the lower of the two settings (in this case, screen off; therefore, sceeen off is higher priority).
Third, the other battery settings pretty much flow similarly to what KSmith has suggested in the original post. I have my charging profile set a little higher as far as minimums go only because the only time my phone is really plugged in with the screen on is when I'm using my GPS app (Co-Pilot V8), and it seems to like the minimum being this high for me. I also have my in-call settings a little bit higher because sometimes my dialer screen is a little bit laggy during a call in CM7 and this seems to help with that too.
I'm attaching a link to my setCPU backup file, you should be able to place this on the root of your SD card and restore from the profiles page in setCPU if you like these settings.
Here's the link
Important: These are my settings, YMMV, and your phone may not be able to handle overclocking to 806.