Does the machine go through the steps to save memory to disk and enter a low power state? Yes.

But then windows can and does decide to wake itself up at any time, resulting in physical damage to the machine if it's stored in a closed bag. Discharging the battery and heating up the entire machine dramatically reduces your battery's lifetime. You cannot disable this behavior without going into the registry.

So yes, it 'works', with the caveat that the machine may wake itself at any time, burn through the entire battery and possibly do irreprable damage to your machine.