I face the same problem 
$ cat /etc/usplash.conf
# Usplash configuration file
# These parameters will only apply after running update-initramfs.
xres=1024
yres=768

$ uname -a
Linux mabus7747 2.6.31-14-generic-pae #48-Ubuntu SMP Fri Oct 16 15:22:42 UTC 
2009 i686 GNU/Linux

-- 
Boot starts with: "setting mode nnn x nnn failed"
https://bugs.launchpad.net/bugs/67826
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