Hmmm, have you tried to reboot OS after you did your new settings...

Just a wild shot , Bebi, but have you installed the Acer drivers for the display? My Acer came with a disc but you can get them online also. Maybe they will help with power management.

I don't think it came with any drivers.

And I forgot to mention that it's running Vista.

Don't think I've tried yet, but wouldn't that be the kicker? I've also noticed that I have to open the lid to wake it back up (keyboard has a sleep button). Once my niece is pried away from the thing I'll have to try a reboot.

Rebooting didn't work.

The only thing I can think up is go to your Power Options and check the Advance Power Settings and check to see if the are set they way you want them.....

Checked that too....doesn't make much sense to me either.

Hmmm, have you tried using your Hardware and Device manger to check all Hardware and Drivers....

Seems to be an issue with Acer Monitors. Try disabling the screensaver and see if it works.

What kind of graphics? What type connection?

NVIDIA GeForce Go 7150M, monitor is hooked up via VGA cable.

Disabled the screensaver and now everything will go to sleep as it should (weird), however I still have to open the lid to wake it back up. At least it automatically sleeps now, that was the main issue.

I happy you found your solution to your problem, did you get your screensaver from a third party. I've found out that some screen savers you download from other sites somehow disable your settings for some reason....

Are you using  a separate keyboard or do you use the laptop keyboard. It would seem you can set it when the lid closes to do nothing in the power settings. And just press any key to wake it up while it's asleep.

And hibernation is different from sleeping....