This tool was called CPUIdle. At the time it was written either the K2 or the Pentium II (I do not remember which one it was) had no feature to go idle, when it was not actively executing code. You can say: these CPUs were always running like under full load and therefore at a high temperature. As these CPUs were build on a 35nm and later 25nm process they became quite hot and using CPUIdle was able to reduce the temperature when running a typical mix of applications. Of course it did nothing, when the CPU was forced to run full load anyway (like in a 3D game).
With todays CPUs this tool is no longer needed, as they all feature an Idle mode.
Cheers
Speedy