I confirm same behaviour here on 2.6.24-17.

lspci | grep VGA
01:00.0 VGA compatible controller: nVidia Corporation G72 [GeForce 7300 LE] 
(rev a1)

Removing vga=xxx from menu.lst doesn't fix the problem.

-- 
nvidia-glx-new causes unusable tty's
https://bugs.launchpad.net/bugs/220951
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