Had similar problem after installing ubuntu 7.10, after install usplash did not load and the system wouldn't start. i erased quiet splash from the boot line on grub, and loaded the system. after that i did what you suggested and also reinstalled usplash and usplash-theme-ubuntu. now the system loads fine. i guess it's because i did what you suggested only my screen resolution is 1280x800, so i changed from 1280x1024 to 1280x800 in usplash.conf . this is a critical problem if it happens with other widescreen laptops like mine. (mine is toshiba).
Had similar problem after installing ubuntu 7.10, after install usplash did not load and the system wouldn't start. i erased quiet splash from the boot line on grub, and loaded the system. after that i did what you suggested and also reinstalled usplash and usplash- theme-ubuntu. now the system loads fine. i guess it's because i did what you suggested only my screen resolution is 1280x800, so i changed from 1280x1024 to 1280x800 in usplash.conf . this is a critical problem if it happens with other widescreen laptops like mine. (mine is toshiba).