"When called into the actual Service of the United States"______
This phrase refers only to the militias, which are controlled by the states except when called into national service by the POTUS. The POTUS is always the CIC of the Army and Navy (and now Air Force and Marines).
Only the United States Congress has that authority.
Congress has the authority to declare war (Article I, Section 8), but Congress doesn't get to decide who is the Commander-in-Chief. And since Congress hasn't declared a war since WWII, it's pretty clear that the POTUS can conduct war without such a declaration, and can keep a war going as long as the Congress will appropriate the money needed.
What you wrote above is actually correct, but only in time of conflict.
The POTUS can send the military anywhere, anytime, to do anything, without consulting Congress. That's what "Commander in Chief" means.
Since the War Powers Act passed Congress (overriding Nixon's veto) in 1973, the POTUS is supposed to notify Congress within 2 days of deploying the military, and after 60 days is supposed to get authorization to continue. But since Congress has no ability to enforce the Act, except to impeach the President or withhold funding, it hasn't had any real effect on the POTUS's exercise of the Commander-in-Chief role. A recent example: http://www.nytimes.com/2011/06/16/us/politics/16powers.html
It's all available to read in rather straightforward language. It's not that hard to understand. It's a shame there are those that don't understand the basics of how our government really works.
I couldn't agree more.
