I have figured the reason behind the problem. It is related to the sd
card reader. If there is a card in the reader, the suspend hangs the way
I have described, otherwise it does fine.

The suspend before login works, because the card is not mounted. After
the user logs in, the card is mounted, and that remains mounted after
the user logs out, and so the suspend hangs the system even after
logging out.

Removing the card takes care of the problem. Now I need to figure out,
why it happens with a card in the reader.

-- 
Suspend Lenovo Thinkpad X61
https://bugs.launchpad.net/bugs/569882
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