The work arounds work to varying degrees for most people experiencing this 
issue, and I won't rehash them. That being said, I run the ATI proprietary 
driver in Ubuntu 10.10 and had this issue as well. This is an issue with 
proprietary drivers and NOT plymouth itself or Ubuntu. This is a prime example 
of closed versus open source and these type of things can and do happen.
Until vendors such as ATI, Nvidia, et al, share openly with open source 
programmers these issues will pop up from time to time. 

My issue was fixed using a combination of startup manager (as mentioned
above) and grabbing the latest stable release of the ATI proprietary
driver. Frankly I cannot be sure which actually fixed the issue because
I used startup manager while the latest driver was downloading. I didn't
see the issue as being a big deal and really didn't pay much attention
to it. All I really know is now the issue is fixed and the only changes
I made were to use startup manager, install the Latest ATI prop driver,
and a bit later install Zorin splash screen utility (can't remember its
name ATM). So one of these or all of them fixed it for me. Sorry I
cannot be more specific but as I said before this was not a big concern
of mine and so the fix wasn't a priority.

Personally I feel this is a simple cosmetic problem and being that it is
not harming the functionality and only on screen for a few seconds, it
most likely will never be a high priority to fix. Oh I am sure it will
be fixed sooner or later but not before things like the ethernet/DHCP
issues and such are ironed out. Those issues are effecting the
functionality so rightly should be a higher priority. Along with that,
ATI and Nvidia are not going to go out of their way for this cosmetic
issue any time soon.

Bottom line is try the work arounds mentioned several times here, or
wait for the next update and hope they or ATI/Nvidia fix it. This is the
current price we pay for a completely free (as in to use) OS. As long as
big M, big U, and big A are able to do what they do unhindered, these
things will continue to pop up.

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https://bugs.launchpad.net/bugs/563878

Title:
  Ubuntu splashscreen big and ugly after installing ATI/nVidia
  proprietary graphics driver

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