Just tested this on Karmic RC -- behavior is still the same:

-- on fresh boot, closing the lid does nothing (just turns the display 
backlight off);
-- suspending works correctly when triggered from the menu, or by pressing the 
hotkey;
-- after suspending has been triggered once, closing the lid suspends the 
laptop (HP Pavilion dv4000).

On a side note, this does not appear (to my n00b eye) a particular
distro problem. Newest SuSE and Fedora, at least, exhibit the same
behavior.

I truly hope this will get fixed at some point.

-- 
suspend when closing laptop lid doesn't work
https://bugs.launchpad.net/bugs/44058
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