It was some USB WIRELESS MOUSE. It slept fine after we unplugged that. Another user had limewire (what a mess.)
Sorry but there is so little in your post to see what is plugged into what. Don't let "it worked before" stop you from testing without USB devices.
A few months ago Vista stopped applying my power management settings. I have a desktop. I've tried restoring defaults and rebooting, but that did nothing. I have to put the computer to sleep manually.
I have the display set to turn off after 15 minutes and the computer should go to sleep after 30 minutes. But something on the system changed and Vista keeps the computer on all the time.
Advice on how to fix this problem is appeciated.