I've tested it on the latest LiveCD (Alpha 4 - Released August 13th, 2009). 
I can reproduce the bug here too. Although now by default when I close the lid 
the laptop goes to suspend, when I change this in Power Management Preferences 
to 'Blank Screen', the bug appears.

I've included the output from dmesg and the Xorg.0.log file.

** Attachment added: "boot.messages"
   http://launchpadlibrarian.net/30506112/boot.messages

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[i965gm] dual-screen set to clone after closing laptop lid
https://bugs.launchpad.net/bugs/407676
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