First you need to update your system to BIOS 1.06. Our problem was specifically addressed in the readme file which came along with that BIOS version. To update the BIOS you need to hit the ThinVantage key on your Thinkpad and update your system.Second, you must select not only to show critical updates but all available updates. Select the BIOS and start the process. Your old BIOS file will be saved in case you wish to use it later.
After the new BIOS is installed enter the presentation manager (FN + F7) and choose LCD Screen only.
Close your lid and open it. The resolution should now permamently switch to 800 x 600 (and not pop back to 1024).
Enter your Display settings (where you can normally change resolution) and change your resolution to your LCD's native resolution
You are done!
If this does not help let me know which model you have and we will do it again.
Regards,
Krish
Computer Support Specialist
Tech support Anaylst - EDS