On a MSI KT3-ARU based PC when I select "standby" it goes into that mode. However, on reactivating the active screen area is displaced and is not in the original X-Y postion. (This appears to be related to the fact that on Start-up I have had to offset the screen in X-Y so that it is central when Win98 is loaded).
There are no references I can find in the Windows documentation although I can only assume it is a problem associated with the GEforce 4 graphics card.