Ok tried that. Did not help to display time-out and automatic lock screen.

Anyway Speaker Auto Switcher works and answering cals so it is not Proximity sensor. Search continues...

And that slight screen dim works too so I do not think its hardware?
Also I have uninstalled Status Menu Extensions 0.1.0 but that did not help.

(this messed Bilboard but I think reinstalling helps)

~ # apt-get install system-ui-screenlock-nokia
--reinstall
Reading package lists... Done
Building dependency tree
Reading state information... Done
The following packages will be upgraded:
system-ui-screenlock-nokia
1 upgraded, 0 newly installed, 1 reinstalled, 0 to remove and 4 not upgraded.
Need to get 585kB of archives.
After this operation, 0B of additional disk space will be used.
Do you want to continue [Y/n]? Y
Get:1 https://downloads.maemo.nokia.com ./ system-ui-screenlock-nokia 1.3.3-1+0m8 [585kB]
Fetched 585kB in 0s (896kB/s)
(Reading database ... 61242 files and directories currently installed.)
Preparing to replace system-ui-screenlock-nokia 1.3.3-1+0m8 (using .../system-ui-screenlock-nokia_1.3.3-1+0m8_armel.deb) ...
Unpacking replacement system-ui-screenlock-nokia ...
aegis-installing system-ui-screenlock-nokia (from 'com.nokia.maemo')
aegis-installing system-ui-screenlock-nokia (DBus session 'com.nokia.systemui.ScreenLock' configuration)
Processing triggers for applauncherd-launcher ...
Setting up system-ui-screenlock-nokia (1.3.3-1+0m8) ...
Updating desktop entries... Done
~ #