On my Elitebook 6930p (Lucid Lynx, ATI Radeon, proprietary drivers), I
was able to get rid of the problem using the instructions found here:

http://idyllictux.wordpress.com/2010/04/26/lucidubuntu-10-04-high-
resolution-plymouth-virtual-terminal-for-atinvidia-cards-with-
proprietaryrestricted-driver/

In short, I had to install the uvesafb driver and do some modifications
to the grub configuration and the initrd image.

The relevant portions of my /etc/default/grub now look like this:

GRUB_CMDLINE_LINUX_DEFAULT="quiet splash nomodeset 
video=uvesafb:mode_option=1152x864-24,mtrr=3,scroll=ywrap"
GRUB_CMDLINE_LINUX=" vga=0x0356"
GRUB_LINUX16=true
GRUB_GFXMODE=1152x864

-- 
Lucid: garbled video at boot on radeon 7xxx cards: bad color map due to 16-bit 
fb
https://bugs.launchpad.net/bugs/564471
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