Haha, no it’s not a stupid question… it’s probably one of the most confusing things about the Tag Module.
Basically, your Tag Cloud should look something like this:
{exp:tag:cloud weblog="my_blog" category="favorite_category" groups="10" step="3" limit="40"}
<a href="{path=’tags/tag’}{websafe_tag}" title="{tag_name}" style="font-size:{step}px;">{tag}</a>
{/exp:tag:cloud}
What you have to make sure is that in your Path to the Tag, the structure works like this:
path=’tags/tag’
“tags” is an example Template Name. If you have the Tag:Entries page on a template within another Template Group, you’ll need to specify the Template Group as well… like this:
path=’template_group/tags/tag’
The “template_group/tags” part is the full path to the Tag Entries template
path=’tags/tag’
The ‘tag’ part of the path is nothing more than a “trigger” in the URL to trigger the Tag:Entries loop.
So you should not have a template named ‘tag’ in this instance..... you can name it whatever you want, and use whatever path you want, but always keep the ‘tag’ part in the URL structure 
Let me know if that makes sense 
