I've been having the same trouble with Hardy. I have a HP Compaq nc6000
and use the fglrx drivers.

My solution is two-fold:
1) change the gnome-power-manager settings so that "nothing" is done on a lid 
closure. This fixes the issue with mouse movements turning on the display (or 
anything, really - maybe not useful for a laptop connected to external monitor).
2) At this point, the backlight is shut off, but there is still an image 
displayed on the screen (as can be seen in bright light). The "radeontool" must 
be used to turn off the screen. I modified the above lid.sh.pre script (after 
giving executable permission! That cause me lots of frustration!) by copying 
the two lines in lid.sh that turn on and off the light using radeontool to the 
respective places in lid.sh.pre

This is a quick hack (as most of this thread is about, but it make me
happy!)

-- 
closed Laptop Lid to reliably keep Backlight off
https://bugs.launchpad.net/bugs/41994
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