For the record, I get garbled terminal too. I just installed usplash on
a 2.6.26-1-amd64 box, with an intel card (946GZ). It starts fine
(vga=795) but after some time (I don't have the text display so I can't
say when) the screen drops to black with green “boxes” and it seems I
can't change tty. And sometime it freezes there and wont boot to X, but
I tried some magic on the keyboard (ctrl-c, ctrl-alt-del etc.) and
eventually it manages to boot.

Booting with nosplash works fine (as booting with splashy)

Cheers,
-- 
Yves-Alexis

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