1) Replace "quiet splash" with "nomodeset".
2) Replace "quiet splash" with "xforcevesa".

nomodeset works as expected. Meaning gdm loads, and I can login normally
(and choose a new session).

xforcevesa -- same issue as seen when removing "quiet splash".

-- 
[i945] intel gma 82945G xorg does not work at boot
https://bugs.launchpad.net/bugs/586173
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which is subscribed to xserver-xorg-video-intel in ubuntu.

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