iMac Computer Sleep

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I have an iMac running Lion OS

Screen saver works Fine, Display Sleep works fine but if I set the Computer sleep to 'Never', the computer still goes to sleep.
Maybe my understanding of Computer Sleep is wrong. My understanding is that if the Computer goes to sleep then to work then the Sign In procedure with password is required but if the Computer does not go to sleep then even after the Display goes to sleep, re-awakening the screen should display a fully functioning computer without the necessity to sign in again.
My machine goes through the process of Screen saver>Display Sleep>Computer sleep although Computer sleep is set to Never.
Am I Misunderstanding the term 'Computer Sleep' or have I got some setting wrong somewhere. Apple is littered with settings which are misleading and confusing, Give me Windows any day.
 
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Hopefully you'll find your answer here...

http://support.apple.com/kb/HT1776

Cheers!

Thanks Charles. The Support site does not really address my problem.
I have used the Apple Community to try and get an answer to this issue and I will see if I get any replies.
I appreciate your help, but like so many things on this Mac, I find that a change to some setting has an affect on seemingly totally disconnected applications. I have had it for about two years now and I am getting more and more frustrated with it. I have Found Microsoft Windows far more intuitive than the Mac OS, but of course Windows has a very nasty habit of becoming inoperable after two or three years so I guess I will have to put up with the idiosyncrasies of Apple.
 
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