I can confirm seeing this problem after a recent upgrade.  Each of the
following made the issue go away:

  * Removing the 'splash' parameter from the bootloader
  * Booting to an earlier kernel
  * Downgrading to usplash 0.5.27


** Attachment added: "usplash_0.5.27_i386.deb"
   http://launchpadlibrarian.net/22443881/usplash_0.5.27_i386.deb

-- 
Lost all graphics on "Jaunty" after last update.
https://bugs.launchpad.net/bugs/327230
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