Same problem. I've edited the appropriate file /etc/grub.d/00_header to
"set gfxpayload=1024x768x16". Then ran sudo update-grub to update the
grub.cfg file. I then open the grub.cfg file to verify & it is updated.
But when I reboot my computer I get the grub2 screen for OS selection,
choose Ubuntu, then all I get is a blinking cursor on the upper-left.

I too have a nVidia card. Using the depreciated "vga=791" works.

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Unable to enable framebuffer modes with grub 2
https://bugs.launchpad.net/bugs/428519
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