I just grabbed all the latest updates, kernel and all.  Closing the lid 
successfully suspends the machine.  Opening the lid successfully bring me back 
to my desktop.
The only problem is that when it wakes back up there is a slight graphical 
glitch in the Date/Time applet.  I'm not sure if the glitch is in the applet or 
somewhere else.

-- 
Xorg crash after failure to suspend on lid close [Xorg assert failure: X: 
../../src/i830_batchbuffer.h:79: intel_batch_emit_dword: Assertion 
`pI830->batch_ptr != ((void *)0)' failed.]
https://bugs.launchpad.net/bugs/549617
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