On openSUSE KDE 3.5.7, Kpowersave 0.7.x you can turn off the screen lock when you shut your laptop lid by going to 'Configure Kpowersave' (right click the battery/adapter icon in the system tray). Click the general settings tabs and look for 'Lock screen'. Un-cross "lock screen on lid close".
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Click ok. And should be done.
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