I have reinstalled 11.04 where suspend works fine. I looked at lid.sh
and there is no sign of pm-suspend either


#!/bin/bash
# TODO:  Change the above to /bin/sh

test -f /usr/share/acpi-support/state-funcs || exit 0

. /usr/share/acpi-support/power-funcs
. /usr/share/acpi-support/policy-funcs
. /etc/default/acpi-support

[ -x /etc/acpi/local/lid.sh.pre ] && /etc/acpi/local/lid.sh.pre

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

grep -q closed /proc/acpi/button/lid/*/state
if [ $? = 0 ]
then
    for x in /tmp/.X11-unix/*; do
        displaynum=`echo $x | sed s#/tmp/.X11-unix/X##`
        getXuser;
        if [ x"$XAUTHORITY" != x"" ]; then
            export DISPLAY=":$displaynum"           
            . /usr/share/acpi-support/screenblank
        fi
    done
else
    for x in /tmp/.X11-unix/*; do
        displaynum=`echo $x | sed s#/tmp/.X11-unix/X##`
        getXuser;
        if [ x"$XAUTHORITY" != x"" ]; then
            export DISPLAY=":$displaynum"
            grep -q off-line /proc/acpi/ac_adapter/*/state
            if [ $? = 1 ]
                then
                if pidof xscreensaver > /dev/null; then 
                    su $user -c "xscreensaver-command -unthrottle"
                fi
            fi
            if [ x$RADEON_LIGHT = xtrue ]; then
                [ -x /usr/sbin/radeontool ] && radeontool light on
            fi
            if [ `pidof xscreensaver` ]; then
                su $user -c "xscreensaver-command -deactivate"
            fi
            su $user -c "xset dpms force on"
        fi
    done
fi
[ -x /etc/acpi/local/lid.sh.post ] && /etc/acpi/local/lid.sh.post

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https://bugs.launchpad.net/bugs/863834

Title:
  [regression] Suspend on lid close broken on Oneiric

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