OK This is awfully weird, but I put everything back in ready for exchange and it's working fine again.
Internal temp on the celeron is showing 22 deg now.. rising rapidly. I've just done about 5 suspend/resume operations and it's perfectly fine again.
Here's what I think what happened (at least my theory). It has something to do with the interface between the heatsink and CPU.
Originally when it started crashing, it would crash a little later after starting up, like not right away, after a suspend/resume.
I replaced the pad on the heatsink, I noticed that there was a little square sheet of metal placed on top of the CPU core, which I did not reuse.
I noticed that there was an "air bubble" pocket but I didn't think too much of it. I replaced it with arctic silver 5, and reassembled.
Still crashed.
Next I got my P4-m CPU and I cleaned off all the surfaces and reassembled with arctic silver 5.
Still crashed.
Last night finally, I took off the heatsink and I found another air bubble

Put everything back in that was stock (celeron, cisco wifi etc)
And now it's resuming and suspending properly!