Latitude XT will not automatically Hibernate (Windows 7)

I just reformatted my Latitude XT with Windows 7 and it won't automatically go into hibernation as per my power settings. I have it configured so that it will first go into sleep mode after being idle or closing the lid and then go into hibernation a short time after. However, rather than waking up from sleep mode and going into hibernation after the allotted time, it just wakes up from sleep mode and does nothing before ultimately cycling between sleep mode and on. If I manually select hibernation it works fine, but I want to be able to close my laptop at the end of class, put it in my backpack, and have it go into hibernation if I don't open it back up in 10 minutes.

Wake-on-LAN is disabled and nothing in device manager is allowed to wake the computer.

I checked event viewer and it doesn't really show much other than the laptop going into sleep mode and then waking up.

Laptop set to hibernate after 1 minute:

And then two minutes later it just goes back to sleep since it's set to go to sleep after being idle for 2 minutes.

 

This is what attracts my attention:

I'm not sure what the lid switch is doing there to trigger a wake-up.

What happens if you leave the computer open but inactive. Does the sleep -> hibernation process work OK? Alternatively, set the sleep button (Fn+F1) to sleep and disable the lid closing action.

John

 

I disabled the close lid action and everything is the same.

If I leave the computer open and inactive, it goes into sleep and then wakes up when it's supposed to go into hibernation. But instead of going into hibernation it just sits there as if I actually woke it up by pressing the power button.

When I press the sleep button (Fn + F1) it hibernates even though it's definitely set to sleep. Huh?

But then it just goes into hibernation.

And turning it back on gives this event:
System time change
and

Wake Source would be me turning the dumb thing back on...