Thanks! That allowed me to access the 3.4 kernel.
However I am running it right now and still can't get access to native resolutions. Even though I am running the 3.4 kernel it only gives me 1024 (4:3) as the max resolution. Maybe I have to remove/install something else, since this system was getting booted with the simplified kernel? Any idea what it could be?

Btw, do you think it's wise to change the GRUB password to be the same as my disk encryption password?

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