I had the same problems on my Dell XPS M1210 running Ubuntu 9.10.  When
I closed the lid the screen turned off and would not turn back on when
it was opened.  Here is what I did to resolve the issue:

# Make a backup of lid.sh if it exists
sudo mv lid.sh lid.sh.bak
#Create new lid.sh
sudo vi lid.sh

#!/bin/sh
# always turn on screen on open lid, regardless of policy or anything
grep -q open /proc/acpi/button/lid/*/state
if [ $? = 0 ]
then
    # lid is open; turn the screen on
    vbetool dpms on
else
    # lid is closed; turn the screen off
    vbetool dpms off
fi

if [ `CheckPolicy` == 0 ]; then exit; fi


#Make lid.sh executable
sudo chmod +x lid.sh

#Restart acpi daemon
sudo /etc/init.d/acpid restart

This solution worked when using AC or battery power.  I also noticed
that the screen was turning back on after a few seconds when the lid was
closed and if I opened it the screen would turn off again.  Everything
seems to be working correctly now.

-- 
Screen locks up black on laptop lid close.
https://bugs.launchpad.net/bugs/49521
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