Just I had this problem when i installed Ubuntu 7.10 The Gutsy Gibbon to
my laptop Toshiba Satellite A135-S2326: Intel Celeron M, Display Size
15.4" widescreen, Graphics ATI Radeon Xpress 200M, I had to switch to
console (CTRL+F1) so I checked the link mentioned by Ric Flomag:
https://bugs.launchpad.net/ubuntu/gutsy/+source/ubiquity/+bug/150930

And first at all I noticed my usplash.conf was different of the Screen 
Resolution of the xorg.conf file so I commented the original values of the 
usplash.conf and I changed to
# Usplash configuration file
#xres=1280
#yres=1024
xres=1280
yres=800

And I followed the explanation of bluwShark who found the solution in
https://bugs.launchpad.net/ubuntu/+source/usplash/+bug/63558:

1) Change the resolution in /etc/usplash.conf to 1024x800 # like my xorg.conf
2) Add vga=791 to the kernel line in /etc/boot/menu.lst
3) sudo update-initramfs -u -k `uname -r` # In my case 2.6.22-14-generic

Restart it and ready! my laptop right now is booting fine, I hope this
can help you guys.

-- 
kinit: No resume image
https://bugs.launchpad.net/bugs/103148
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