Well I did a bit of searching (
http://groups.google.com/group/tasker/
browse_thread/thread/5c4f55691bba6333/) and noticed that
other users have also faced this problem.
I did a bit of testing and playing with tasker...and I may have found
a bug/limitation with tasker (or limitation in android itself)
I was able to verify that as soon as the screen turns on ("screen on"
event is triggered), the tasker's proximity sensor state doesnt check
the
sensor (whether covered or uncovered) until their is a CHANGE of
state...
Now only if tasker could check the state of proximity sensor as soon
as the phone gets out of display mode....