I'm the author of Bug #63831 and I have the same problem. I can confirm that Ulfzart's solution (editing /etc/usplash.conf and doing update-initramfs) fixes it for me.
What might be of interest for the developers is that usplash worked perfectly in edgy when I upgraded a working dapper install. Which is weird, because dapper doesn't have a file /etc/usplash.conf and the resolution seems different than 1024x768 to me... so it kinda got it correctly configured on the upgrade. But not on a fresh install. -- usplash resolution error in boot and halt https://launchpad.net/bugs/60621 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs
