The CM2 had (well, those delivered to customers, anyway) a minimum of 8,192 processors, and up to a maximum 65,535. I worked on one for a number of years. I heard (but never saw) that for internal development at Connection Machines each developer had a single 512-processor board to work on.
You're spot on about the single-bit processor thing though. In their *Lisp implementation, you could declare an integer to be as many bits as you wanted, up to the max 128k bits each processor had.