Same problem here, all VTs are corrupted when using 'splash', works fine when 'splash' is removed. I also get that same distorted image for half a second when logging out of gnome, right before gdm shows up. The VTs do work, however. Logging in and typing 'reboot' restarted the machine. vga=791 didn't change anything.
edgy, 2.6.17.10-generic, ATI X1400, fglrx -- Latest usplash leaves my consoles corrupted https://launchpad.net/bugs/63558 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs