Same bug with Gutsy for me.

Laptop: Acer TravelMate 4504LMi
Kernel: Linux 2.6.22-14-generic #1 SMP Sun Oct 14 23:05:12 GMT 2007 i686

In System -> Preferences -> Power Management, in "On AC Power", I set
"Blank Screen" or "Suspend" when the laptop lid is closed.

However, when I close the laptop lid, I can see that the display is
still on.

Do you need some additional data to analyze the problem ?

** Tags added: acer laptop lid manager power suspend

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laptop lid close not detected on fiesty (Iqon laptop)
https://bugs.launchpad.net/bugs/108561
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