diff -ruN b//debian/changelog a//debian/changelog
--- b//debian/changelog	2010-10-10 17:55:57.000000000 +0500
+++ a//debian/changelog	2010-10-20 15:46:43.589462761 +0500
@@ -1,3 +1,9 @@
+empathy (2.32.0.1-0ubuntu2) maverick-proposed; urgency=low
+  
+  * dont show notifications when status is busy/away. (LP: #641949)
+
+ -- Omer Akram <om26er@ubuntu.com>  Wed, 20 Oct 2010 15:46:51 -0500
+ 
 empathy (2.32.0.1-0ubuntu1) maverick-proposed; urgency=low
 
   * New upstream release (LP: #654981)
diff -ruN b//libempathy-gtk/empathy-notify-manager.c a//libempathy-gtk/empathy-notify-manager.c
--- b//libempathy-gtk/empathy-notify-manager.c	2010-10-04 14:19:26.000000000 +0500
+++ a//libempathy-gtk/empathy-notify-manager.c	2010-10-20 15:41:55.552063784 +0500
@@ -207,7 +207,7 @@
   if (presence != TP_CONNECTION_PRESENCE_TYPE_AVAILABLE &&
       presence != TP_CONNECTION_PRESENCE_TYPE_UNSET)
     {
-      if (!g_settings_get_boolean (gsettings,
+      if (g_settings_get_boolean (gsettings,
             EMPATHY_PREFS_NOTIFICATIONS_DISABLED_AWAY))
         goto finally;
     }