There has been some changes on this problem. It can now sleep!!

Just click System -> Quit... -> Suspend on the live CD. However, this
does not work in installed system. This seems to be caused by the fact
that the "nvidia" kernel module is loaded in the installed version, but
not in the live CD environment. Unloading it in single user or full X
mode allowed suspend to work (just by clicking System -> Quit... ->
Suspend).

Since by default the nvidia module is loaded but not used. I'm not sure
where it is being loaded (I blacklisted it in /etc/modprobe.d/blacklist
and it didn't prevent it from being loaded), but maybe it should not be
loaded so as to allow suspend to work. nvidia-glx is not enabled be
default anyway.

I tried to get the nvidia driver to sleep by using the NvAGP option, but
it did not work.

-- 
Suspend to RAM (sleep) goes to sleep but fails to wake.
https://launchpad.net/bugs/20889

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