Looks like both problems were related to the fact that I used update-
manager for 3 years to update between versions.

I made fresh 8.10 install and sleep/wake-up works fine for me now.

Regarding sound button problems I've reported bug #290636 which has also
been solved by the fresh install and config changes in gnome.

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Wakeup after suspend to RAM not working
https://bugs.launchpad.net/bugs/106198
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