I have ubuntu 7.10 and under 'Power Management', I had enabled my laptop to go in suspend mode when I close my monitor. However, when I close then open my computer, the screen becomes totally distorted and I can't see what's on the monitor at all. I then have to force shutdown on my computer.

How do I fix this?

Video driver problem. Post your lspci and what video driver you are using.
Just today I was reading about 7.10 issues when resuming from suspend.

rootb33r, here's the info you requested from me:

x@xx:~$ lspci
00:00.0 Host bridge: Intel Corporation 82852/82855 GM/GME/PM/GMV Processor to I/O Controller (rev 02)
00:00.1 System peripheral: Intel Corporation 82852/82855 GM/GME/PM/GMV Processor to I/O Controller (rev 02)
00:00.3 System peripheral: Intel Corporation 82852/82855 GM/GME/PM/GMV Processor to I/O Controller (rev 02)
00:02.0 VGA compatible controller: Intel Corporation 82852/855GM Integrated Graphics Device (rev 02)
00:02.1 Display controller: Intel Corporation 82852/855GM Integrated Graphics Device (rev 02)
00:1d.0 USB Controller: Intel Corporation 82801DB/DBL/DBM (ICH4/ICH4-L/ICH4-M) USB UHCI Controller #1 (rev 03)
00:1d.1 USB Controller: Intel Corporation 82801DB/DBL/DBM (ICH4/ICH4-L/ICH4-M) USB UHCI Controller #2 (rev 03)
00:1d.2 USB Controller: Intel Corporation 82801DB/DBL/DBM (ICH4/ICH4-L/ICH4-M) USB UHCI Controller #3 (rev 03)
00:1d.7 USB Controller: Intel Corporation 82801DB/DBM (ICH4/ICH4-M) USB2 EHCI Controller (rev 03)
00:1e.0 PCI bridge: Intel Corporation 82801 Mobile PCI Bridge (rev 83)
00:1f.0 ISA bridge: Intel Corporation 82801DBM (ICH4-M) LPC Interface Bridge (rev 03)
00:1f.1 IDE interface: Intel Corporation 82801DBM (ICH4-M) IDE Controller (rev 03)
00:1f.3 SMBus: Intel Corporation 82801DB/DBL/DBM (ICH4/ICH4-L/ICH4-M) SMBus Controller (rev 03)
00:1f.5 Multimedia audio controller: Intel Corporation 82801DB/DBL/DBM (ICH4/ICH4-L/ICH4-M) AC'97 Audio Controller (rev 03)
00:1f.6 Modem: Intel Corporation 82801DB/DBL/DBM (ICH4/ICH4-L/ICH4-M) AC'97 Modem Controller (rev 03)
02:07.0 CardBus bridge: Texas Instruments PCIxx21/x515 Cardbus Controller
02:07.2 FireWire (IEEE 1394): Texas Instruments OHCI Compliant IEEE 1394 Host Controller
02:07.3 Mass storage controller: Texas Instruments PCIxx21 Integrated FlashMedia Controller
02:08.0 Ethernet controller: Broadcom Corporation BCM4401 100Base-T (rev 01)
02:09.0 Network controller: Intel Corporation PRO/Wireless 2200BG Network Connection (rev 05)

What video driver are you using?

r00tb33r, how do i find out what video driver I'm using? Sorry for being a bit of a newb.