This is happening for me as a new regression after upgrading to Karmic.
It happens 100% of the time coming back from suspend, and I think also
from hibernate.
What seems to be happening is this: the unlock dialog appears on the
screen just before the machine suspends, so that dialog thinks too much
wall time has expired when the machine wakes up.
A few seconds after the "timeout has expired" message comes up the
unlock dialog disappears, leaving the screen blonk, so people may think
the machine has failed to resume.
** Changed in: gnome-screensaver (Ubuntu)
Status: Invalid => Confirmed
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"Timeout has expired" error on resume from hibernate
https://bugs.launchpad.net/bugs/50198
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