Geez... rookies... putting things in the freezer. hah!
Remove all PCI cards that did not come shipped with the computer as it came from Apple. Some PCI cards do not let the computer go to sleep.
Remove all devices, other than the keyboard and mouse, and VGA monitor. Just easier to diagnose the problem that way.
Take out the battery from the computer. Make sure you know which way its pointing for when you put it back in. You only need the battery when you want the computer to keep time WHEN YOU DO NOT HAVE IT PLUGGED INTO THE WALL OUTLET.
Unplug the computer from the wall, this should reset the power manager chip since it would lose power until you plug it back in.
Press your power switch on the front of the computer, feel if its sticking or not. If it is, then that could be your problem.
Plug the computer back into the 1950s-vintage electrical power grid of the Northeastern United States.

(Plug it back into the wall.)
Power up the computer via the power switch on the front of the computer. As soon as you do, press and hold down apple-option-O-F on the keyboard. Keep holding it down until you get a screen with some text on it.
At the ">" prompt, type
reset-nvram, then hit the
return key.
Follow this up with
shut-down, then hit the
return key.
This should reset your PRAM, as well as shutdown your computer.
Power up the computer again, and let it go to the operating system. When its at the Finder, select 'SLEEP' from the Apple menu (or the Special menu in OS 9).
If its still acting the same way, there is a 10 pin cable near where the hinge of the computer door is. Its near the airport slot. WITH THE COMPUTER UNPLUGGED, try taking this cable in and out. It should be pretty simple. When you have gotten the knack of taking it in and out, put it back in, plug the computer in, power it up and get back into the operating system.
Now, this is where we really void your warranty. DON'T DO THIS IF YOU THINK THERE IS STILL ANY CHOICE. You could either fry something, or not. Mostly likely not, but you have been warned. I've done this to a lot of systems, and have not been burned since, but you might not have the same luck as I do.

When the system is at the operating system, yank out that 10 pin cable. Your power switch should be disconnected, and your power light should go off, but the system should still be on... hopefully.
Now, try and put the system to sleep via the keyboard/mouse. You should be able to wake it up too, using the keyboard and mouse. If that works, then your problem is NOT the MLB, but on the front power switch board.
Good luck... don't forget to get some horseshoes and rabbit's foot.
