Issue
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There is a known issue with the password security feature on the PowerBook 5300 and 190 series computers. If you open the Password Security control panel and set the password security is turned on and is set for ask password on wake, the unit will not sleep.
Workaround
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One workaround is to turn off the "ask for password on wake" feature. If this is done, the PowerBook will be able to sleep.
Resolution
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This issue is resolved by installing the System 7.5 Update 2.0 which includes the Password Security 1.0.3 control panel.
Article Change History:
05 Sep 1996 - Reworded for clarity.
18 Mar 1996 - Added information about resolution.