This is still an issue in 8.04.2 with kernel:
#uname -a
Linux miriam-laptop 2.6.24-24-generic #1 SMP Wed Apr 15 15:54:25 UTC 2009 i686
GNU/Linux
kernel package version: 2.6.24-24.53
laptop model: PSA70C-DD100E
(http://www.toshiba.ca/web/product.grp?lg=ensection=1group=223product=3150part=2631#spectop)
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Toshiba Satellite A70 always reports lid as closed
https://bugs.launchpad.net/bugs/70102
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