This paper analyzes the performance of cooperative amplify-and-forward (CAF) relay networks that employ both optimal power allocation among nodes based on relay position and adaptive M-QAM/M-PSK modulation in generalized fading environments. The paper develops a unified analytical framework using marginal moment generating functions to derive expressions for average bit error rate, mean achievable spectral efficiency, and outage probability over a range of fading distributions. It applies this framework to analyze CAF relay networks with adaptive modulation over Rice fading channels. The paper also employs an approximate moment generating function to further simplify computation complexity. Finally, it applies the framework to analyze the impact of optimal power allocation based on relay position.