I started seeing this bug in Ubuntu Natty, and I don't know if the cause
was the same but I'm adding my experience here for others that find it
via googling.  In my case, it turned out that since the upgrade, my
"suspend" button was now being interpreted as a "hibernate" button
instead.  There was no entry in gconf for a hibernate command, so it
didn't know what to do.

The error in gnome-power-manager was:

- action: /apps/gnome-power-manager/buttons/hibernate set to blank (The
hibernate button has been pressed.)

Adding a key called /apps/gnome-power-manager/buttons/hibernate and
setting that to the value of "suspend" fixed the problem

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https://bugs.launchpad.net/bugs/410829

Title:
  [GM965/GL960] Pressing Suspend key turns off display instead of
  suspending

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