X definitely isn't starting before usplash quits in karmic; the usplash
upstart job is defined as:

stop on (starting-dm
         or stopped rc RUNLEVEL=[2345]
         or starting rcS)

and each of {gdm,kdm,xdm} is configured to emit the 'starting-dm' signal
before it starts - so unless you're starting X by hand (in which case
the usplash package can't be expected to fix that for you), this doesn't
look like a usplash bug.  There have been some fixes in the past couple
of days to usplash's upstart job (usplash 0.5.41 and above), but nothing
that should ever have caused usplash to be running concurrently with X
on startup.

The bug report shows that non-free nvidia drivers are in use.  I think
this is much more likely to be a bug in that driver; reassigning to
nvidia-graphics-drivers-180 (whoop, please confirm which vintage of
nvidia driver package you're using).

** Package changed: usplash (Ubuntu) => nvidia-graphics-drivers-180
(Ubuntu)

-- 
Ctrl + Alt + F1 etc. fail to send me to console
https://bugs.launchpad.net/bugs/447692
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which is subscribed to nvidia-graphics-drivers-180 in ubuntu.

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