Same problem of yours with an hp nx7400 notebook (intel 945gma).
xset dpms off
shuts down the backlight for a few seconds.
Only vbetool dpms off shuts down backlight really.
I tried on debian etch (similar packages, same i810 driver, same notebook) the 
problem is not present.

It's a bug related to ubuntu's Xorg.
See also bug:
https://bugs.launchpad.net/distros/ubuntu/+source/xserver-xorg-video-i810/+bug/37364

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Laptop backlight does not turn off
https://launchpad.net/bugs/19410

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