The same behavior is exhibited by Hardy 8.04 on my Thinkpad x41. That
is, when I close and then open the lid the screen stays black. Only
restarting xserver or rebooting does anything.

Changing the Power Management setting for 'When laptop is closed' to
suspend does actually put the machine into suspend. However, coming out
of suspend is slower than just restarting xserver.

Changing the Power Management setting for 'When laptop is closed' to 'do
nothing' does not work. Nor does 'blank screen' or 'hibernate' do
anything to fix this.

-- 
Screen locks up black on laptop lid close.
https://bugs.launchpad.net/bugs/49521
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