In my case the added code was VGA=771 and the effect was to convert the
display font to unreadable garbage, not only for the text displayed
during boot but for all virtual terminals using text mode. However the
GUI on tty7 operated normally. Manually removing the VGA=771 from
/etc/default/grub cured the problem.

A few hours later I found a thread in the forums reporting the same
thing happening to another user, with the same cure working.

It's not a show stopper but is definitely an annoyance! Apparently these
codes are inserted when one attempts to change resolution for the boot
displays. This is with xubuntu 10.04.1, as a fresh install.

-- 
inserts deprecated code into grub
https://bugs.launchpad.net/bugs/495436
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