Won't Sleep From Start Menu but Sleep Timer Works

The mouse solution didnt work. when i run lastwake after trying to set to sleep there is no change from before tried to put it to sleep.

Uhm, no I don't have a wireless mouse. I could possibly try to find one. But what makes you think the mouse is the issue?

Try creating a new shortcut to see if the PC will sleep using the shortcut.

Set the target to "C:\Windows\System32\rundll32.exe powrprof.dll,SetSuspendState FALSE" (without the quotes).

Set the name to "Sleep".

Ooops, sorry I wrote that wrong. I meant I don't have a wired mouse. But why do you think that's the problem?

Did you try using the Sleep shortcut i posted earlier?
That could determine if it's just a problem with the Sleep option on the Start menu, or something else.

Wireless mice can cause sleep problems.
I've had problems with these before.

Some media programs can also cause problems for sleep.
I have an HTPC and run into this.

You could also run an Energy report with the powercfg -energy command.

Is hibernate enabled, listed on the start menu, and does that work?
If hibernate is enabled and not listed on the Start menu, disable Hybrid sleep (or use Process Explorer to test it).

You could also run the System File Checker with the sfc /scannow command.

Wanted to jump in here that i have the exact same problem. On a cold boot, the sleep will work once (ie. shut down, flashing LED on power-button indicating sleep state and fans/other lights shut down). However, on subsequent sleeps, the fans stay spinning and the power is clearly on (though monitor is turned off). If you wake it from this state (S5?), it's as though you woke it from sleep. The command powercfg -lastwake is correct in reporting what woke the computer.

Like the OP, if I let the sleep timer kick in, everything sleeps just fine. It's the action of forcing the sleep that causes the problem.

I have unplugged everything from my system, including ethernet and all USB devices. I tried a wired usb keyboard/mouse, and thought that was it, as it went in/out of sleep for about half-a-dozen times, then it was back to the un-normal sleep with fans spinning.

I am on a whole new ASUS P8Z77-V Deluxe motherboard with a fresh install of Windows 7 Ultimate x64. I previously had an ASUS P8P67 Pro, and it also ocassionally exhibited the same issues. What I would notice is after a windows update, sleep would break. I'd have to go back to a previous system restore, then things were good...even after forcing the windows update again! A month or two later, the problem would crop up again. Right now, I cannot get it working again. What is windows up doing to my system?!

I have hibernate turned off, so all I use is sleep.

Oh, I should add that I ran the system check, and also created a shortcut on my desktop with the command shown above. No difference.