Correction - with the current Karmic (after today's update), with or without the updated gnome-power-manager from your PPA, my laptop does not sleep when closing the lid.
Specifically, if I go to "power management preferences" I see that it is set to shutdown when lid is closed, for both "on ac power" and "on battery power" and I can't change it - if I set some other value and click "close", when I open it again it is reset to the previous values.
So at the moment I can't test how the laptop behaves when the lid is closed.
Correction - with the current Karmic (after today's update), with or without the updated gnome-power-manager from your PPA, my laptop does not sleep when closing the lid.
Specifically, if I go to "power management preferences" I see that it is set to shutdown when lid is closed, for both "on ac power" and "on battery power" and I can't change it - if I set some other value and click "close", when I open it again it is reset to the previous values.
So at the moment I can't test how the laptop behaves when the lid is closed.