Comment 62 for bug 376793

This also causes another problem: the display doesn't go to sleep automatically after a certain idle time.

The following appears in the output when I run gnome-power-manager with verbose mode:
"lid is closed, so we are ignoring ->NORMAL state changes"

It assumes that the lid is closed and, because of that, it ignores any change of the display mode.

It works well until the lid is closed for the first time.
After that, it always assumes that the lid is closed.