@roger,
In Spanish, 'que' is not used as a pronoun. The pronoun for 'that' is 'esto', or 'eso' or 'esta' or 'este' depending on gender and proximity.
This is an example of the complexity of English, not of Spanish. Consider the following completely different uses of the word in English.
1. "That is a very big pickle". A subject pronoun.
2. "The girl that I dated turned out to be an alien". Object of a relative clause.
3. "That woman is a menace". Use as an adjective.
4. "Study hard so that you can get a good grade". Conjunction
5. "I stumbled backwards. It was just that big!". Adverb showing extent.
6. "It's foolish for Herman Cain to enter the race, that is to say, he has no chance of winning.". Idiom.
7. "This is my response, and it's a good one at that". Another idiom.
I don't think that the grammar of Spanish is nearly as confusing as that of English, and that's that.