I have had the same problem, and I'm running OS8.6.1 on my WS/300: Frankly, I've never had an Apple laptop that could wake up properly

Here's what I do with my WS: If it goes to sleep, press the power key to shut it off -- you'll hear the chime when the dialog box appears -- then press "Enter" to shut down, and re-boot. Then, set the computer to not sleep, but spin down the hard drive. Instead of sleeping, just turn down the brightness/contrast. Inelegant? Sure, but no sleep problems
Good luck!