Questions about how CPUs work (pretty simple questions)

Hi, I had a look on google and whatnot but I couldn't find the answer to this question:
"What is the '90nm' in a '90nm Chip' ". You see this kind of stuff alot in reviews of Core2Duo processors, comparing their 65nm technology to AMD's old 90nm technology.

I asked my physics teacher and he though it might be the distance that the electron has to jump in the layers of the chip to generate one 'bit' of data, or something along those lines.
Others say that it's the size of the chip, I don't know what they're talking about there because when im holding one it's alot bigger than 90nm.

People talk about them so much that im sure it probably pretty common knowledge.
One other thing which I think I know but am not too sure about is how much data is transferred in one clock cycle of a CPU. I gather that if it's a 64bit CPU it transfers 64bits in one cycle, so that in a 3Ghz, 64bit CPU, 192 billion bits of data are transferred, 3billion x 64.

I hope you can help me answer my questions, thanks very much.
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