I've experienced this problem and fixed it by following the advice given here:
http://ubuntuforums.org/showthread.php?t=358432

I'm running Hardy on a Dell Inspiron 8100 with an Intel CPU and an
nvidia GeForce2 Go, using the nvidia proprietary driver. I highly doubt
the CPU/video card really matters here, but yet again, this could be an
entirely different issue.

My variation on the advice given in the linked thread was to edit
/etc/acpi/lid.sh and to place

#!/bin/sh
grep -q open /proc/acpi/button/lid/*/state
if [ $? = 0 ]
then
    # lid is open; turn the screen on
    vbetool dpms on
fi

before

if [ `CheckPolicy` == 0 ]; then exit; fi

Basically, it seems that on a bunch of Dell laptops, there exists
*something* before the OS is even loaded (maybe in hardware/as a BIOS
setting?) that turns off the screen when the lid is closed. The only way
to turn it back on is via vbetool; xset, which the lid.sh script uses,
doesn't work, so the screen remains off. Additionally, it also seems
that in recent releases of Ubuntu, or at least on Hardy, the script
never gets past the aforementioned policy check.

If this is indeed the same problem, the following bugs seem to be related to it:
https://bugs.launchpad.net/ubuntu/+source/gnome-power-manager/+bug/67231
https://bugs.launchpad.net/ubuntu/+source/acpi/+bug/49521
https://bugs.launchpad.net/ubuntu/+source/acpi-support/+bug/22987

-- 
After closing the lid, video does not come back by pressing any key.
https://bugs.launchpad.net/bugs/44393
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