Yes, I ran into this too.  Stéphane Graber suggested:

  gsettings set org.gnome.settings-daemon.plugins.power sleep-inactive-ac-type 
'nothing'
  gsettings set org.gnome.settings-daemon.plugins.power 
sleep-inactive-battery-type 'nothing'

But the UI is supposed to do this and apparently doesn't.  This is going
to be very confusing for our users; we need to sort it out for 11.10 if
at all possible.

** Also affects: gnome-control-center (Ubuntu Oneiric)
   Importance: Undecided
       Status: Confirmed

** Changed in: gnome-control-center (Ubuntu Oneiric)
   Importance: Undecided => Critical

** Changed in: gnome-control-center (Ubuntu Oneiric)
    Milestone: None => ubuntu-11.10

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https://bugs.launchpad.net/bugs/864479

Title:
  System goes to hibernate or suspend even when set to "Don't suspend"

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