Okay, megahertz is simply a measure of how many clock cycles occur per second with a given CPU (e.g. a 3.2GHz CPU performs 3.2 billion cycles per second). CPUs also do a certain amount of work per cycle.
Intel CPUs (the netburst variants, anyway), sacrifice the amount of work done per clock in order to gain more clocks. Conversely, AMD sacrifices clocks in order to be able to gain efficiency per clock.
Now, don't think that greater clocks immediately equals less efficiency -- process technologies and new manufacturing techniques allow the wizards at AMD and Intel to sqeeze out more clocks, keeping the same amount of work done per clock.
But the reason why AMD can have far lower clocks than Intel and maintain pretty much equal performance is due to their efficiency per clock.
-ECX