Linux CFS (Completely Fair Scheduler) latency

I am a beginner to the Linux Kernel and I am trying to learn how Linux schedules processes.

I have read some books on the Linux Kernel and gone through the links from IBM http://www.ibm.com/developerworks/linux/library/l-cfs/ and all, but I am still left with some doubts.

1. How does the scheduler schedule all of the tasks within the sysctl_sched_latency time?
2. When a process wakes up what actually is done in the place_entity function?
3. When a process wakes up why is the vruntime adjusted by subtracting from sched_latency? Can't that lead to processes in the run queue with large differences in the vruntime value?