For me clean install of Kubuntu 11.10 64b  fixed this problem. I have
NVidia GeForce480 GS in Dell Precision T5500 and the boot process now
displays the full resolution (as far as I can tell) Kubuntu logo and
asks for pasword for encrypted discs with nice graphic prompt.

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https://bugs.launchpad.net/bugs/563878

Title:
  Ubuntu splashscreen big and ugly after installing ATI/nVidia
  proprietary graphics driver

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