MB: Won't sleep when lid closed and power connected.

Upgraded to Lion a few days ago and everything seems to be working great besides one thing:
When I close the lid on my Macbook (mid 2009) and the power is connected, the light remains on and the computer won't sleep. When i lift the lid everything is how I left it with no blink of the screen as it fires back up. However, when the power is disconnected, the computer sleeps fine when the lid is closed.
How can this be solved?
Thanks!!

OK, think I found my problem.
I had to send my laptop in for repair due to a faulty screen. When I got it back it all looked OK so the first thing I did was install Lion. Then I noticed the sleep issue so assumed it was Lion causing it. I tried the pram, SMC other settings but nothing helped. In the end I reinstalled Snow Leopard, same problem! I tried from bootcamp and same problem, wouldn't sleep when closing the lid.
Doing some googling I found a post where someone has the magnet in the display fail, which is what contacts a switch in the laptop when you close the screen. To test they suggest placing a paper clip on your screen bezel until it sticks to find the magnet, then finding where it locates when closing the screen on the laptop. Then run a small magnet (i used a small fridge one) over this location on the laptop with the screen up. I did this and instantly went to sleep!!! WOOHOO! remove magnet it wakes up, repeat and OK. Close screen without magnet and nothing.
So its gone back in for repair to have the screen replaced again.

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I found another similar post, however it was resolved by the individual reinstalling the operating system.
My issue is more complicated. I have made sure everything is up to date, all the settings that tell the system to sleep when the lid is closed are turned on. I have even turned those settings off off, just so I could turn them back on to make sure there wasn't something quirky about it.
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Could there be a hardware issue? Something inside not connected? This laptop works perfectly EXCEPT for the fact that it will not sleep when the lid is closed. It is out of warranty but had I known this was an issue while it was still under warranty, I would have inquired. This unit is in pretty fantastic shape, looks brand new too. No damage, never been dropped, and only ever handled by me (never loaned out).
How can I fix this?

Thanks for the reply, gat0gelat0.
Yes, those settings were the first things I checked. I also tried changing it to "Do nothing", then changing back to the sleeping option. It still does nothing when I close the lid.
I would like the functionality of it going to sleep when I close the lid for the convenience, like when class ends, I have to rush to my next class, I just want to close the lid, put it in my bag and run to the next class. Keyboard shortcuts like Fn-F4 work, but this laptop should have the functionality I am describing, and I want to figure out why it isn't working and how to fix it.
I suspect there is an issue with whatever is used hardware wise to sleep the machine. Either it's not being triggered, or it's not there, or it's broken. I've tried running a magnet around the bezel of the LCD screen as well as around the palm rest bezel and there is no activity as I've read that many laptops trigger sleep by interaction by a magnet. Still nothing.

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I just bought my first Mac & am still trying to figure some things out.
Is there a way to have it wake on wifi? I like to be able to connect to my machines when I'm at the office. My Macbook goes to sleep & then I can't remotely access it. Wake on LAN works fine, but I don't want to keep an ethernet cable plugged in.
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I found a 3rd party app InsomniaX, but would rather find a supported way of doing this.

Insomniax is your best bet. The only other way would be have an external monitor, keyboard, and mouse hooked up.

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IBook will not sleep when lid closed

Hi,
I recently had my Hard Drive replaced, the old one died. It was all covered by AppleCare and the repairs done at a Apple Authorised Outlet. After installing everything again I just found out that my iBook will not sleep when the lid is closed. The screen is still on and bright. Any ideas why? Is this dangerous? Any quick fixes?
Cheers,
Jack

Jack,
Welcome to Apple Discussions.
You need to give the Apple Authorized Repair center a call back and let them know what's going on. I've seen this before here on the forums, and it was attributed to a sleep magnet not being put back in. It's most likely this. Apparently, putting this magnet back in can be easily overlooked.
Brian

MB: Won't sleep when lid closed and power connected.

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