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When I put my machine to sleep, it loses the nnetwork connection. I am assuming that is what is going on because when I wake her up, MSN is disconnected and my email starts checking the inbox again.
No. If the laptop kept it's network connection it wouldn't be asleep
Sleep mode on a Mac is effectivly an suspend to ram function. The only power the system is being supplied is the power required to keep the RAM charge so it does not loose it's contents. For all intents and purposes everything else is turned off.