Same bug here, lid always reports as "closed".  Kernel 2.6.27-11.  HP
530, Intel 945GME graphics.

Note: Lid button will shut screen off just fine if I boot with acpi=off.
Can't suspend then though...

-- 
/proc/acpi/button/lid/*/state always says "open"
https://bugs.launchpad.net/bugs/89860
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