Hibernate mode

Please check if you have the boot option ACPI=off (or NOACPI) configured during startup. If there is, edit the grub entry and remove it (if you edit in the GRUB menu while booting, settings will be lost at the next boot). However, I don't expect you to have this boot option enabled. In that case, you may suffer a kernel bug.
Maybe this one?
https://bugs.launchpad.net/ubuntu/+source/linux/+bug/448025

I am new to this Linux. but the following lines are in my config file. Am I in the right location?

Thanks

# Power management and ACPI options
#
CONFIG_PM=y
CONFIG_PM_DEBUG=y
# CONFIG_PM_VERBOSE is not set
CONFIG_CAN_PM_TRACE=y
CONFIG_PM_TRACE=y
CONFIG_PM_TRACE_RTC=y
CONFIG_PM_SLEEP_SMP=y
CONFIG_PM_SLEEP=y
CONFIG_SUSPEND=y
CONFIG_PM_TEST_SUSPEND=y
CONFIG_SUSPEND_FREEZER=y
CONFIG_HIBERNATION_NVS=y
CONFIG_PM_DISABLE_CONSOLE=y
CONFIG_HIBERNATION=y
CONFIG_PM_STD_PARTITION=""
CONFIG_ACPI=y
CONFIG_ACPI_SLEEP=y
CONFIG_ACPI_PROCFS=y
CONFIG_ACPI_PROCFS_POWER=y
CONFIG_ACPI_SYSFS_POWER=y
CONFIG_ACPI_PROC_EVENT=y
CONFIG_ACPI_AC=y
CONFIG_ACPI_BATTERY=y
CONFIG_ACPI_BUTTON=y
CONFIG_ACPI_VIDEO=m
CONFIG_ACPI_FAN=y
CONFIG_ACPI_DOCK=y
CONFIG_ACPI_PROCESSOR=y
CONFIG_ACPI_HOTPLUG_CPU=y
CONFIG_ACPI_THERMAL=y
CONFIG_ACPI_CUSTOM_DSDT_FILE=""
# CONFIG_ACPI_CUSTOM_DSDT is not set
CONFIG_ACPI_BLACKLIST_YEAR=2000
# CONFIG_ACPI_DEBUG is not set
CONFIG_ACPI_PCI_SLOT=y
CONFIG_X86_PM_TIMER=y
CONFIG_ACPI_CONTAINER=y
CONFIG_ACPI_SBS=y
CONFIG_X86_APM_BOOT=y
CONFIG_APM=m
# CONFIG_APM_IGNORE_USER_SUSPEND is not set
# CONFIG_APM_DO_ENABLE is not set
# CONFIG_APM_CPU_IDLE is not set
# CONFIG_APM_DISPLAY_BLANK is not set
# CONFIG_APM_ALLOW_INTS is not set

Well, that is related, yes, but I wouldn't know what it does exactly. What I mean is the boot options for GRUB. I don't know exactly where to configure them (I think the right place would be /etc/default/grub).
But here are two ways to check whether you have any acpi-related boot option enabled:
1) look at the entries in the GRUB menu during the boot process. You can see boot options defined at the end of the line (usually just before "quiet splash").
2) $ cat /boot/grub/grub.cfg | grep acpi
If that gives any output, look in the file /etc/default/grub to see if you can find the same boot option there and remove it (first backup the file)

But my guess is that you are not using any boot options, and that you are suffering the bug mentioned earlier. If that is the case, you can post the brand and type of your motherboard and kernel version (command "uname -r") there and ask if they need more information to resolve the bug in future kernel releases. This may take quite a while, so then you are left with three options I think:
1) try other kernels (unfortunately, I don't see any other in the repositories)
2) accept that hibernate doesn't function as it should
3) fall back to 9.04