I just have the same problem with GDM and an ATI HD4670. (Lucid as of
now) I believe it has to do with the fglrx (I'm using the just released
one) not liking the "radeon" kernel driver. Leaving everything as it is,
I can see the splash (graphically) but it then goes all purple and
nothing more happens. The keyboard is dead at this moment.

The things to make it work are:
  1. "nomodeset" kernel parameter, or
  2. "radeon.setmode=0" kernel parameter, or
  3. blacklisting the "radeon" module followed by update-initramfs

But then I only see the text mode splash. :(

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boot hangs on splash screen, doesn't switch to KDM
https://bugs.launchpad.net/bugs/538524
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