Ahhh.... Here are my people!
I too am having the same issue. Called AppleCare twice with no luck. Went to the Genius Bar today, again with no luck. I left with a homework assignment of "Reinstalling Leopard using the 'Archive & Install option."
Again, no luck.
I have tried...
-Reset the SMC
-Reset the PRAM
-Repair Permissions
-Delete the HD/Library/Preferences/SystemConfiguration folder
-Reinstalled Leopard Twice
My Settings...
-Screen Saver = Never
-Energy Star, display sleep = After 10 minutes.
-Energy Star, computer sleep = After 45 minutes.
-Energy Star, Options, "Automatically reduce brightness before going to sleep" = UNchecked.
After 4 minutes on AC power (2 on battery) the screen goes dark, the little blue light in the latch button does NOT light up. If I do nothing, after 10 minutes, the light will come on steady (apple, for display is asleep,) and after 45 minutes, the light will throb as the computer goes to sleep.
If I check the "Reduce brightness before going to sleep" button, the screen will dim after 4 minutes, at 10 minutes, the screen will darken and the blue light will be steady. In other words, everything works like it should. Once this box is unchecked, voila! There is the bug.