log out on lid event?

I have strange problem when I close the display on my dell c600 - very often it logs out and restarts the X server instead of just switching off the display. And in the power settings there is no such an option.
Even if I set it to "Do nothing" on lid event it still loges out...
Here are the both cases /var/log/acpid:
log out:
[Sun Jan 14 11:32:04 2007] received event "button/lid LID 00000080 0000000b"
[Sun Jan 14 11:32:04 2007] notifying client 1488[68:68]
[Sun Jan 14 11:32:04 2007] notifying client 2357[0:0]
[Sun Jan 14 11:32:04 2007] completed event "button/lid LID 00000080 0000000b"
[Sun Jan 14 11:32:04 2007] received event "video VID 00000080 00000000"
[Sun Jan 14 11:32:04 2007] notifying client 1488[68:68]
[Sun Jan 14 11:32:04 2007] notifying client 2357[0:0]
[Sun Jan 14 11:32:04 2007] completed event "video VID 00000080 00000000"
[Sun Jan 14 11:32:07 2007] received event "button/lid LID 00000080 0000000c"
[Sun Jan 14 11:32:07 2007] notifying client 1488[68:68]
[Sun Jan 14 11:32:07 2007] notifying client 2357[0:0]
[Sun Jan 14 11:32:07 2007] client has disconnected
[Sun Jan 14 11:32:07 2007] completed event "button/lid LID 00000080 0000000c"
[Sun Jan 14 11:32:07 2007] received event "video VID 00000080 00000000"
[Sun Jan 14 11:32:07 2007] notifying client 1488[68:68]
[Sun Jan 14 11:32:07 2007] completed event "video VID 00000080 00000000"
[Sun Jan 14 11:32:17 2007] client connected from 2643[0:0]
[Sun Jan 14 11:32:17 2007] 1 client rule loaded

only display turn off:
[Sun Jan 14 11:38:16 2007] received event "button/lid LID 00000080 00000001"
[Sun Jan 14 11:38:16 2007] notifying client 1487[68:68]
[Sun Jan 14 11:38:16 2007] notifying client 1641[0:0]
[Sun Jan 14 11:38:16 2007] completed event "button/lid LID 00000080 00000001"
[Sun Jan 14 11:38:16 2007] received event "video VID 00000080 00000000"
[Sun Jan 14 11:38:16 2007] notifying client 1487[68:68]
[Sun Jan 14 11:38:16 2007] notifying client 1641[0:0]
[Sun Jan 14 11:38:16 2007] completed event "video VID 00000080 00000000"
[Sun Jan 14 11:38:19 2007] received event "button/lid LID 00000080 00000002"
[Sun Jan 14 11:38:19 2007] notifying client 1487[68:68]
[Sun Jan 14 11:38:19 2007] notifying client 1641[0:0]
[Sun Jan 14 11:38:19 2007] completed event "button/lid LID 00000080 00000002"
[Sun Jan 14 11:38:19 2007] received event "video VID 00000080 00000000"
[Sun Jan 14 11:38:19 2007] notifying client 1487[68:68]
[Sun Jan 14 11:38:19 2007] notifying client 1641[0:0]
[Sun Jan 14 11:38:19 2007] completed event "video VID 00000080 00000000"

Additional info:
Graphics: ati rage m3, Driver: r128

Does someone have a suggestion on this, because its realy stupid not to be able to close the display without closing all documents etc.

I tried the vesa driver and now I know for sure, it's a r128 driver issue. Unfortunately it's not solved yet.
Besides I found out, that acpi doesn't work as it should - suspend works only if I select it for a lid close event, but the laptop doesn't go in suspend after the given time in gnome power manager.

As far - any ideas for r128 lid problem?

Ok, last question - please answer when someone knows:
how can I switch off this check for the lid event? Even if I chose "Do nothing" it hangs. I want just to disable it now.
where are the config files for gnome-power-manager or whatever app is responsible for this?

I MADE IT !!!
It's my first time, that I search for errors in the src rpm code , that's why the !!!!!
So,
the acpi deamon was causing this restart because of the following lines in the event.c from the src.rpm:
/* reset signals */
// signal(SIGHUP, SIG_DFL);
// signal(SIGTERM, SIG_DFL);
// signal(SIGINT, SIG_DFL);
// signal(SIGQUIT, SIG_DFL);
// signal(SIGPIPE, SIG_DFL);
// sigprocmask(SIG_UNBLOCK, signals_handled(), NULL);

line 548 through 556. As you can see I have comented them, and now everything is fine. I suppose that only one reset signal is the cause and I will search for it, but now everything is just fine