Doing this as someone above posted:

"1) Changed the resolution in /etc/usplash.conf to 1024x768
2) sudo update-initramfs -u -k `uname -r`"

Fixed the issue for my ThinkPad T40 (Radeon 7500 as the video card).

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Black screen, and bad usplash.conf
https://bugs.launchpad.net/bugs/150930
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