same thing with intel cards - i have hp nx7400 and i950GMA on board. 
Interesting thing is that, when i disconect or connect power cord or 
ethernet wire the last touch of lid close button is working (i mean that 
when i have closed lid before this). It might have been problem with 
sending signals - something might be blocking singals form lid button. 
(sory for my english ;) )


> You might all be interested to know that I have found some intriguing
> symptoms. I was just wondering if you all had an ati card and you were
> all using the open ati drivers on it as opposed the fglrx drivers. if so
> try the vesa drivers by adding Driver "vesa" in to the Device section of
> your /etc/X11/xorg.conf file, reboot and watch the lid button button
> mysteriously start working again! I know this sounds odd but these are
> the empirical facts also try pressing the lid button when loading and
> you are on the linux kernel but not your xorg drivers and 'hey presto'
> the screen will blank. We may have been 'barking up the wrong tree' to
> coin a phrase.
>
>

-- 
/proc/acpi/button/lid/*/state always says "open"
https://bugs.launchpad.net/bugs/89860
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