The reed switch is along the right edge of the screen assembly. You can just pop the back of the screen casing off (after removing 4 screws), and then you can unscrew it, or just leave it place and cut the cables, which is what I usually do. Just make sure not to confuse it with the WIFI antenna. Once you've cut the cables the laptop will no longer go to sleep when you close the screen lid, but at least the behavior you're experiencing will stop.
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You can replace the whole thing, but you're talking about a pretty intense repair. Personally, I would not bother on such an old laptop.
The reed switch is along the right edge of the screen assembly. You can just pop the back of the screen casing off (after removing 4 screws), and then you can unscrew it, or just leave it place and cut the cables, which is what I usually do. Just make sure not to confuse it with the WIFI antenna. Once you've cut the cables the laptop will no longer go to sleep when you close the screen lid, but at least the behavior you're experiencing will stop.