Yes, the gdm background needs to be changed with a content that matches the 
xsplash one.
I can also confirm that behaviour, especially on a slow netbook.

** Also affects: xsplash
   Importance: Undecided
       Status: New

** Changed in: xsplash
       Status: New => Triaged

** Changed in: xsplash
   Importance: Undecided => High

** Changed in: xsplash
     Assignee: (unassigned) => Cody Russell (bratsche)

** Changed in: xsplash
    Milestone: None => ubuntu-9.10

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xsplash timing out too early
https://bugs.launchpad.net/bugs/435522
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