Hey what's up... Overclocking/tweaking ram is of the same mind set as overclocking the cpu. Mostly trial and error and lots of testing. Some can run 1T some can't, it all depends on the motherboard, the actual ram you have, and the voltage your willing to run through them.
The first thing I would do is leave the command rate on auto for now, and find the highest frequency your happy/stable at. Once you have locked down what frequency your going to be running at, I would move to the main timings, and see if you can lower them a bit. Test Test Test... If your good there you can try running 1T can't hurt.
CPU-Z is telling you something different from the package because it is reading the actual contents of the SPD chips on the RAM. What the packaging is telling you is that you bought RAM that was tested at a higher speed (overclocked) after it left the assembly line. If you will note, the packaging gives a higher speed at looser timings and probably a higher voltage.
Second: I leave the command rate (?) on Auto. I spent a lot of time on my first Core2 system testing and tweaking settings. Based on DDR2-1000 RAM, I found that dropping the command rate from -2T to -1T increased memory i/o about 3%.
Unfortunately, it made no difference in real world performance.
Basically loose timings are higher values meant to run a little slower, and tighter would obviously be lower values. So if your timings are 7-7-7-21, you could loosen them to 8-8-8-24 and so on. Higher timings can help when stability is a problem, but performance will take a hit in the process.