I've got a similar problem with an ATI Radeon X850 XT: 1.) The splash screen appears and is readable. 2.) The progress bar advances to full completion. 3.) Some blue garbage lines appear on the screen and the text consoles are unusable afterwards.
I've checked "/etc/usplash.conf" and it has got the correction resolution: # Usplash configuration file xres=1280 yres=1024 Disabling the splash screen in "/boot/grub/menu.lst" gives me working text consoles. -- Splash screen seems to corrupt Radeon Mobility X700 graphic controller on edgy https://launchpad.net/bugs/73826 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs