Comment 2 for bug 588638

Off hand, i don't remember if this is a limitation of the Omap3, but the blue terminal background has always existed with dss2 since the 2.6.28ish days for me. (Most people run 16bit mode for faster drawing, it takes more bandwidth for 32bit mode)

Give 24 bit mode a try: omapfb.mode=dvi:1280x720MR-24@60