On my server, I tried the kernel parameter (acpi=force) restarted the
machine and tried shutting it down. It now works and turns off as
expected. I think the bug is more related to the bios and acpi than to
Xorg. I know that for some people the option acpi=force still does not
work. I am thinking that the issue might be related to something in the
bios like power management. **wild guess**

If it helps anyone, my grub boot entry now looks like this.

title     Ubuntu, kernel 2.6.15-26-server
root    (hd0,1)
kernel  /boot/vmlinuz-2.6.15-26-server root=/dev/hda2 ro quiet splash acpi=force
initrd   /boot/initrd.img-2.6.15-26-server
savedefault
boot

-- 
Power down after shutdown does not work...
https://launchpad.net/bugs/43961

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