Well my Suspend to RAM finally works. The real problem lies with the usb modules ehci_hcd and uhci_hcd. I unloaded them in my script and modprobe'd them back when waking up. Also the LCD screen still stayed off, quick fix - used vbetool. Here is my script, hope it helps.
Code:
#!/bin/sh
# switch to virtual terminal 1 to avoid graphics
# corruption in X
chvt 1
#remove modules
rmmod uhci_hcd
rmmod ehci_hcd
# write all unwritten data (just in case)
sync
# suspend display
vbetool vbestate save > /tmp/db
vbetool dpms suspend
# suspend
echo -n mem > /sys/power/state
# resume display
vbetool vbestate restore < /tmp/db
vbetool dpms on
modprobe ehci_hcd
modprobe uhci_hcd
rm /tmp/db
# switch back to virtual terminal 7 (running X)
chvt 7
The vbetool statements suspend and turn on the screen.
