This appears to acutally be a gnome-power-manager bug. ACPI is definitely
getting the event.
I wrote a script: /etc/acpi/local/lid.sh.pre that does the suspend via:
dbus-send --print-reply --system \
--dest=org.freedesktop.DeviceKit.Power \
/org/freedesktop/DeviceKit/Power \
org.freedesktop.DeviceKit.Power.Suspend
and suspend on lid close is now reliable.
** Package changed: acpi (Ubuntu) => gnome-power-manager (Ubuntu)
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Sleep and lid buttons don't work in Karmic
https://bugs.launchpad.net/bugs/483258
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