Thanks for the reply rweaver. I really thought I was on to something. I did several suspend/wake cycles and seemed to have pinned the issue to being logged into a VM. Then I shut down the host completely, powered it back up, started a VM, logged in and back out of the VM and then tried the suspend/wake. It FAILED
I was back to the host login.
So I did not do any more experimentation last evening. Today I needed to run a Ubuntu 64 bit VM and VMWare told me it could not be run without virtualization being enabled in BIOS. I re-enabled it BIOS, did my VM testing then left it enabled.
I tried running my XP VM, logging in and then doing a standby. This closes the VM in VMWare and saves the state. Once suspend/wake worked and the next time it did not. I seem to be having success with suspend/wake if I completely shutdown the VM before the host suspend. What a pain.