In my case it's exactly the same as described by @json684 in post 8 (
https://bugs.launchpad.net/ubuntu/+source/gnome-power-
manager/+bug/44058/comments/8 )

the value in /proc/acpi/button/lid/LID0/state toggles rather than reflecting 
the true state. 
I'm wondering if this means the bug is in the laptop/acpi software rather than 
gnome-power-manager...
My laptop is a HP Compaq nx9005 running Ubuntu 9.10.

I can't believe the bug has persisted so long!

-- 
suspend when closing laptop lid doesn't work
https://bugs.launchpad.net/bugs/44058
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