Comment 21 for bug 150930

I had the same problem on a IBM Thinkpad T43 (Model 2668Y3U) with an ATI Radeon Mobility X300 with a fresh install of Gutsy (desktop version).

I've solved this issue using bluwShark's procedure:
1) Changed the resolution in /etc/usplash.conf to 1024x768
2) sudo update-initramfs -u -k `uname -r`

I've to mention that, when usplash had problems, boot process took 180sec. since usplash monopolized all CPU resources (check attached image).