I can positively identify this as a problem with usplash and 8-series
(at least 8800) nVidia cards.

My similar (somewhat more severe) problem began to occur when I upgraded
my video card from a BFG 7800GTX to an EVGA 8800GTS 640MB. Unless I
skipped usplash (nosplash or removed the splash parameter from the
Ubuntu boot line in GRUB/grub.lst) then it would work a bit, then kernel
panic (num + scroll lock lights would flash and it would go no further).
I just today removed my 8800GTS to step-up to the new revision and am
using the old 7800GTX; lo and behold, I look away and because I haven't
updated grub.lst since the last kernel update, when I look back usplash
is there looking just fine.

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[Gutsy] No loading text or usplash when loading
https://bugs.launchpad.net/bugs/136582
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