kungmidas : You have vga=786 in your /boot/grub/menu.lst . Can you boot
without that option and see if you can reproduce this bug at shutdown?
** This bug is no longer a duplicate of bug 127280
usplash shutdown screen corrupt post nVidia restricted drivers installation
** Changed in: usplash (Ubuntu)
Status: Fix Released => Incomplete
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Funky Colors on Shutdown Screen
https://bugs.launchpad.net/bugs/43223
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