Using Ubuntu Lucid Lynx, almost fresh install with all current updates. 
I'm experiencing same problem with Indicator applet, If I try to set to 
invisible I get busy status. I can set invisible status in Empathy though, but 
sometimes it changes to busy for no apparent reason (Indicator applet 
interfering?). 
The only protocol I'm using is bigbrownchunx-skype-dbus (modified pidgin-skype 
20100121+dfsg-1 package from 
https://bugs.launchpad.net/ubuntu/+source/pidgin-skype/+bug/567248?comments=all 
).

-- 
Setting status to 'Hidden' changes status to 'Busy' instead
https://bugs.launchpad.net/bugs/257190
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