Certainly... I did a complete flash of OZ 3.5.4 using the 64/0 boot. For test purposes, my configuration under Light & Power (both battery and AC) is dim after 10, light off after 20, and suspend after 30, and I have checked the box to deactivate the LCD rather than suspend.
What I am repeatedly seeing happen is that the light will dim after 10 seconds, go off after 30 seconds, and the LCD never turns off and the Z never suspends. Testing, this appears to be the same sequence regardless of if the "Deactivate LCD" box is checked or not. I have also set the timeouts at higher numbers (up to 120/300/300) and again see the same type of results.
It's been a couple years since I played with OZ/Opie, however it seems to me there was a similar issue under 3.5.2 which was caused by an incorrect APM setting? I can't seem to find a reference to it here on the board, so I really can't say for sure, but I think I'll check through the backups I have from 3.5.2 and see if I can find any changes I may have made.