Hi, David!
Sleep issues stem from a variety of problems... here are some things to try, to resolve them:
First, run Repair Permissions and Repair Disk from Disk Utility.
Trash the following preference files:
Go to /Library/Preferences/SystemConfiguration and delete the com.apple.PowerManagement.plist and com..apple.AutoWake.plist files.
If the latter file isn't present in the folder, go to User/Library/Preferences, delete the com.apple.systemuiserver.plist file.
USB devices can cause sleep issues. Disconnect USB peripherals, attach them back one at a time, and check the sleep function until you find a culprit. If you have an HP printer or scanner, start there as a likely culprit.
The Macs Faxing option may also cause sleep issues. Disable it in System Preferences, in the Print and Fax Pane (if it's enabled) and test sleep.
I can't explain the NMI mask/NMI event, except to say that the log recorded a command to sleep or to wake from sleep and that these entries also appear when the sleep function is working properly, so they don't tell you much...
Error -122 is an HFS error. badMovErr (there was a move into offspring error). I don't have the faintest clue what that specifically means...
Gary