Thank you for taking the time to report this bug and helping to make
Ubuntu better. Please answer the question:

* The external screen blanks too when you close the lid, not only the laptop 
display?
* Are you using the opensource or the proprietary ATI driver?

This will help us to find and resolve the problem.

-- 
Screen blanks on lid close - Powermanagement is set to "Do nothing"
https://bugs.launchpad.net/bugs/675882
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