Oxygenius, I found the solution over at XDA Developers forums....Thanks to users Bozint and Dan Demonic...
Pressing rapidly on Build number will open Developer Options by prompting "You are now a developer" or something. They are hidden by default. - Bozint
In settings-about phone-build, press build seven times to enable developer options. Not sure about first part of your questions, but make sure your device is plugged in to either a dock or charger thats active, have set following, in settings-security-screen security i set automatic lock to 15seconds , in screen security i set my power button to lock screen immediately and my phone is set to sleep as after 10minutes in settings-display, if i quickpress power button to screen off then again to bring up lockscreen after 15seconds the screen darkens and a few seconds later daydream turns on. There are some great live wallpapers out already set up for daydream on 4.2. if you are lookin for more choices. Hope this has helped rather than confused, am a noob so not up on technical terms etc. - Dan Demonic