Over at his
SkepticalAquarist the WetMan has a good section on carbon. Its under Filtration >> Chemical.
As far as its active lifespan goes, he notes, "Most chemical filter media do have a surprisingly brief effective life. The carbon in your filter does almost all its adsorbing work in the first 48 hours! I was amazed when I first saw the graphs printed with Tim Hovanec's Aquarium Fish articles about activated carbon. The administration and dosage foldout that is currently enclosed with Maracide states 'If an activated carbon filter is over five days old, it may be left in place.' Whether you do leave your filter carbon in place when medicating or not, this goes to show how brief is the effective life of activated carbon."
It does do a lot of fairly extraordinary things and occasional use to clean up the tank is a good specific application. But I still think its best used occasionally and with a target -- it costs too much to be swapping it out twice a week.
So what might you expect it to do? (The WetFeller again: ) "Adsorptive media bind to their vast surfaces a long list of organic pollutants, like phenols (responsible for some 'fishy' odors and discoloration), thiols (sulfurous and stinky), and humic polyphenols like tannins (sometimes desirable, but also responsible for yellowish to brown discoloration of the water). Such large complicated organic molecules are the resistant products that remain when bacteria partially break down organic substances._Other pollutants taken up by adsorptive media are dyes and perfumes, medications, benzene and other volatile chemicals, etc."
(Those are just two clips, not the whole bit -- he's got lots of other good info over at the
SkepticalAquarist )