Still having the same startup problems. Just did the last Maverick Meerkat 
partial upgrade. Then I tried to reinstall VMWare Tools, but it failed. On 
reboot I got a black sccreen. Then I restarted aagain and got the reboot menu. 
there I was able to adjust gfxpayload=text and boot up the latest kernel again
FYI:
$ uname -a
Linux ubuntu 2.6.35-15-generic #21-Ubuntu SMP Wed Aug 11 16:41:40 UTC 2010 i686 
GNU/Linux
$ cat /etc/lsb-release
DISTRIB_ID=Ubuntu
DISTRIB_RELEASE=10.10
DISTRIB_CODENAME=maverick
DISTRIB_DESCRIPTION="Ubuntu maverick (development branch)"

-- 
[ATI] GPU lockup with gfxpayload=keep
https://bugs.launchpad.net/bugs/605614
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