Correction - with the current Karmic (after today's update), with or
without the updated gnome-power-manager from your PPA,  my laptop does
not sleep when closing the lid.

Specifically, if I go to "power management preferences" I see that it is
set to shutdown when lid is closed, for both "on ac power" and "on
battery power" and I can't change it - if I set some other value and
click "close", when I open it again it is reset to the previous values.

So at the moment I can't test how the laptop behaves when the lid is
closed.

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[karmic] inhibit applet not working
https://bugs.launchpad.net/bugs/389857
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