I confirm this for VGA compatible controller: Intel Corporation 82865G 
Integrated Graphics Controller (rev 02)
Changing the BIOS to use 8 MB instead of 1 MB fixes the missing usplash screen.

This bug seems to explain why all Intel integrated graphics does not
work. Can you reproduce this bug with another graphic card than an Intel
one?

** Changed in: usplash (Ubuntu)
   Importance: Undecided => Medium
       Status: New => Triaged

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usplash does not work at 1 MB VRAM
https://bugs.launchpad.net/bugs/106769
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