Hi there, same problem here.
I have switchable graphics HP tm2 Intel/ATI graphic cards.
Closing the lid worked OK on Natty, just upgraded to Oneric, doesn’t work. When 
I close the lid just turn the screen off. 
Now, I don't think is a problem with kernel, drivers, etc. because the function 
suspends works on both graphic cards if it is done on the menu. But suspend 
doesn’t work if you close the lid. So it is a problem with the function on this 
distribution of Ubuntu.
Hope to see it fix soon.

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https://bugs.launchpad.net/bugs/863834

Title:
  [regression] Suspend on lid close broken on Oneiric

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