Updated information as of Ubuntu 10.10.

Even a fully-updated 10.10 system still displayed the same problem; if
the machine was suspended or hibernated, it never resumed. When the
system goes into sleep mode, the backlight of the display does not turn
off unless the lid is closed or the lid-close sensor button in the hinge
is depressed with a pen or screwdriver.

However, adding "nomodeset" to the kernel parameters enables the machine
to suspend and resume correctly, including hibernation. Unlike 10.04, in
10.10 the X server starts normally in 1024×768/16M colours and the
machine is perfectly usable.

I amended the following line by adding "nomodeset" to the end in 
/etc/default/grub:
GRUB_CMDLINE_LINUX_DEFAULT="quiet splash nomodeset"

I then ran update-grub to enable the change.

However, the nomodeset line means that the plymouth graphical loading
screen no longer works. It is replaced with a text-based one.

In the hope of at least running in the native resolution of the LCD and
getting a smoother text loading screen, I added a vga mode parameter to
the same line, as follows:

GRUB_CMDLINE_LINUX_DEFAULT="quiet splash nomodeset vga=792"

This not only worked and reset the console resolution to 1024×768, but
it also re-enabled the graphical loading screen, which furthermore now
appeared with the correct colour palette, removing the coloured fringes
that had affected the default install.

I then dropped the X screen from 16M colours to 65K colours, which gives
a sharp increase in display performance & enables me to use dual-head
with an external monitor running at 1280×1024.

I have documented how I did this in a blog post here:
http://liam-on-linux.livejournal.com/20637.html

I then amended the GRUB line so that the bootup screen mode was the same
as the X one:

GRUB_CMDLINE_LINUX_DEFAULT="quiet splash nomodeset vga=791"

The result is that everything now works: graphical startup & shutdown,
suspend & resume, hibernation, and a fast X display which supports dual-
head operation.

This workaround is entirely successful for me, but I don't know if it
counts as closing the bug.

-- 
IBM/Lenovo Laptops crash when waking up from hibernation
https://bugs.launchpad.net/bugs/350680
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