I know this is an old thread, but it is left unanswered.

Try escaping additional quotes:
GRUB_GFXMODE="\"1400x1050;640x480\""

It will produce extra quotes in grub.cfg:

set gfxmode="1400x1050;640x480"

This is how I got it to work.

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GRUB_GFXMODE and update_grub2 don't work with multiple resolutions
https://bugs.launchpad.net/bugs/506241
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