I'm a bit confused.
I have a C860, and it suspends fine (OZ V3.5.1). The only problem is the usual one that if you shut it down (IE, doing a shutdown -h now, or halt, or from Settings->Shutdown, selecting Shutdown), it will not shutdown cleanly and require a battery pull. I'm still not quite sure of the reason behind this (I keep meaning to look to see if its just a PXA255 issue), but it seems to be common.
But if I use the power button on the back, or simply wait for it to suspend itself, or use the 'suspend' on the menu, it comes back on fine (apart from a small 4-6 second delay). I use the back powerbutton as well as the 'home' button to turn it on with no problems.
- Bundabrg