It was working fine for me. Let me describe the working example.
1) Download drupal 7 wysiwyg module
2) Go to CKEditor download or else v3.5.3 .Please only download version 3.5.3 because other versions may be giving problem. (Read it more from here)
3) After downloading the editor library, put it into sites\all\libraries\ckeditor .
4) Goto -> admin -> configuration -> Wysiwyg profiles
if you placed library correctly into " sites\all\libraries\ckeditor ", then you can see the edit options.
According to your need set the options.
5) Go to content creation area, here you can find your result based upon your setting.
ie, if you enabled it for Full html text format, it will be available only when you set text format as Full Html.
Please see the attached image for more help.