Had the same issue, although "update-grub" found the correct file; the image wouldn't display in the grub menu. My fix involved an edit in Gimp to re-save the image in RGB mode, NOT grayscale or indexed. It works with *.png and *.tga files. This is referenced in https://help.ubuntu.com/community/Grub2 about 70% down.
-- Spash image is not displayed using grub2 https://bugs.launchpad.net/bugs/554603 You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs
