This fixed the problem for me (running 2.6.31-15-generic on Karmic)
Run gconf-editor and go to
/ --> apps --> gnome-power-manager --> actions
and uncheck the box labeled "event_when_closed_battery".
This option is described to be:
"If the battery lid close event should occur (for example 'Suspend when lid closed on battery') when the lid is previously shut and the AC power disconnected at a later time."
This fixed the problem for me (running 2.6.31-15-generic on Karmic)
Run gconf-editor and go to
/ --> apps --> gnome-power-manager --> actions
and uncheck the box labeled "event_ when_closed_ battery" .
This option is described to be:
"If the battery lid close event should occur (for example 'Suspend when lid closed on battery') when the lid is previously shut and the AC power disconnected at a later time."