In case anyone is still looking for an answer, I've found a solution:
Since the screensaver is now handled by gnome, I checked the Configuration 
Editor.  You'll find the screensaver settings in there under apps -> 
gnome-screensaver.  I noticed that  the "idle-delay" key was NOT set to the 
value I put in the gui settings (System->Preferences->Screensaver) which was 1 
minute.  It had 10 instead.  Once I set it to 1 minute the screensaver actually 
started at 1 minute instead of just fading and coming back to the desktop.  
Hope this helps.

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You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to xorg-server in ubuntu.
https://bugs.launchpad.net/bugs/595555

Title:
  screensaver can't be interrupted once fade begins

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