Comment 146 for bug 563878

Actually sorry, the computer where the problem is fixed was an upgrade from 11.04, not a clean install. In either case it improved since in 11.04. In 11.04 the logo wasn't grahics, just text mode and the password prompt was in a text mode as well. Now it is all graphic. The fix I have applied in 11.04 was

https://bugs.launchpad.net/ubuntu/+source/initramfs-tools/+bug/771905/comments/39