I don't think I misunderstood your problem. The setting in the Power Control panel sets the system to go into Standby after so many minutes of inactivity. So now we need to know what "inactivity" means. According to Jose (and I agree), any background program or task that wakes up and uses more than a certain amount of CPU will reset the internal time-out value for going into Standby. This means that a program such as a Virus protection program may wake up and decide to scan your hard drive. This will make your computer look busy, and hence the time left before going into Standby gets set back to Maximum again.
To debug this problem, you need to shut down processes that are running until you find the one that is keeping your system alive. One way to do this is to use "msconfig" to limit what runs at startup on your computer.
"How to troubleshoot configuration errors by using the System Configuration utility in Windows XP"
< http://support.microsoft.com/kb/310560 >
HTH,
JW
Java Quick Starter causes the problem.
On my computer, a Toshiba laptop, standby and/or hibernation would not automatically run. By trial and error I figured out that the Java Quick Starter (jqs.exe), if it is running, causes standby and hibernation not to work.
To fix this go to Control Panel > Java > Advanced > Miscellaneous. Uncheck Java Quick Starter.
Problem fixed.
Geesh! About time... A month of seeking an answer to this problem and I find it at the bottom of this page...hiding. This is ridiculous. It may be time to see what Apple is all about. This computer has wasted vast amounts of my time, and caused much grief. Thanks for posting this fix. NKA