I'm using Hardy, same problem here on desktop. Even though I've set
display to sleep after 2 minutes, the screen does not go to standby -
instead the screensaver continues to display.

I've attached my `gnome-power-manager --no-daemon --verbose` results.

An extract follows:
...
[x11_sync_server_dpms_settings] gpm-dpms.c:130 (06:32:58):       Syncing DPMS 
settings enabled=1 timeouts=0 0 0
[x11_sync_server_dpms_settings] gpm-dpms.c:130 (06:32:58):       Syncing DPMS 
settings enabled=1 timeouts=0 0 0
[gpm_idle_set_check_cpu] gpm-idle.c:236 (06:32:58):      Setting the CPU load 
check to 0
[gpm_manager_init] gpm-manager.c:1782 (06:32:58):        creating new inhibit 
instance
[gpm_manager_init] gpm-manager.c:1792 (06:32:58):        creating new control 
instance
...

Is it because of the timeouts=0 0 0?

Also here's what `xset q` tells about DPMS.
DPMS (Energy Star):
  Standby: 0    Suspend: 0    Off: 0
  DPMS is Enabled
  Monitor is On


** Attachment added: "killall gnome-power-manager && gnome-power-manager 
--no-daemon --verbose"
   http://launchpadlibrarian.net/12972615/gpm.txt

-- 
display doesn't go to sleep after today's gnome-power-manager update
https://bugs.launchpad.net/bugs/203513
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