You may be confusing what the machine is doing with sleep. The machine
will put the monitor into suspend mode, and spin down the drives, but the
processor and RAM will still be fully powered up. As per Ryan Remple on
the XPF page:

"Display sleep works, and is safe. Disk sleep works and seems safe in Mac
OS X 10.1 and later. In Mac OS X 10.0, there were some reports of data
corruption upon waking for sleep.

System sleep is not working yet. On the desktop models, it fails
gracefully (or at least reasonably gracefully--I seem to lose my Internet
connection sometimes). On the Powerbooks, however, sleep crashes the
system. So it is important to turn sleep off in the Energy Saver
preference panel in the System Preferences application. "

-Rob

<quote who="Liam Proven">
>> Sleep works near perfect for me on my 7300 with a 400 MHz G3 running
>> 10.1.5-10.2.6. The only thing that happens is that it occasionally
>> doesn't sleep when I tell it to but when I  tell it again it does it.
>
> I'm on the same hardware, and it always worked for me until the Mac
> became  too unstable to use a few months back. I must strip it down and
> try again ...
>




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