Wake up problem after S3 sleep

Hi,
Vista Ultimate 32bit, Athlon X2 64, Asus P2-M2A690G System with integrated
ATI, 1 GB Ram PC4200.
Unable to work up correctly after sleep, unless bios is set to S1 Only. When
using S3 or Auto, the system will turn on power to USB and I see the CD-ROM
being accessed, but the HD Led never lits and the screen never gets video. I
have a SATA drive installed.
According to Windows Update I'm updated (Except for the optional LAN for
Attansic update that kills my PC (and a whole lot of other PC's out there)).
And I have latest BIOS 0401 installed.

Is it worth to try a PATA or any of the "microsoft please" updates related
to sleep/wakeup errors?
Does anyone have an idea of what to try next.

Thanks