yes, this bug exists in Lucid using kernel 2.6.32rc8. and in my case Ubuntu is 
installed on the SD card so the workaround mentioned here won't help me.
https://help.ubuntu.com/community/AspireOne/Ubuntu9.10

** Changed in: pm-utils (Ubuntu)
       Status: New => Confirmed

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Suspend is not working when an SD card is mounted
https://bugs.launchpad.net/bugs/430875
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