Sometimes /etc/lids is visible — it shouldn't be!
/etc/lids is visible in BOOT mode; it is not visible in POSTBOOTmode, so check you have switched (e.g., lidsadm -I). The directory is also visible in a LIDS-free session.
For example, with lidsadm -S -- -LIDS, it fails with "switching lids failed" the first time, but a second time it works fine with "no global capabilities changed". This is because you need to be in POSTBOOT mode — this is usually reached via lidsadm -I, but lidsadm -S..., even a non-authenticated failure, changes mode to POSTBOOT.
Change to POSTBOOT mode — use lidsadm -I.
Okay, you've installed lidstools without an apparent hitch, setting the password when prompted, but no matter what you do, lidsadm -S won't authenticate — you've even tried un-installing lidstools and re-installed, to no avail.
Check you have the extended attributes set in your kernel
CONFIG_EXT3_FS=y # ...and/or EXT2, depending on /etc/fstab CONFIG_EXT3_FS_XATTR=y CONFIG_EXT3_FS_POSIX_ACL=y CONFIG_EXT3_FS_SECURITY=yand that filesystems are mounted using these — ensure acl is included under the mount options in /etc/fstab and that mount shows this:
prompt> mount /dev/hda10 on / type ext3 (rw,acl,errors=remount-ro) proc on /proc type proc (rw) . . prompt>
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