The kernel you supplied does not fix the issue.
On my custom 2.6.24.3 kernel (in which suspend works) I have this option 
enabled also so I highly doubt that this is causing the suspend issue.

Attached is the config for my working vanilla kernel if it helps you.

** Attachment added: "config-2.6.24.3-16-05-08"
   http://launchpadlibrarian.net/14790671/config-2.6.24.3-16-05-08

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Kernel 2.6.24-17 - broken resume from suspend to RAM
https://bugs.launchpad.net/bugs/226279
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