The BIOS update from v1.03 to v1.27 works for me, too.

And by "works", I mean that the screen doesn't blank (or suspend) when I
play with the power cable, AND the netbook will actually suspend
properly on lid close now.

Thank you for pointing out the BIOS update, John!

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all power state changes cause suspend on acer aspire one
https://bugs.launchpad.net/bugs/401944
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