It's not entirely clear to me what's the issue there.
friendly-recovery got some pretty big changes done in Oneiric, one being
that friendly-recovery now starts a lot earlier in the boot sequence
which very well could fix your problem.
Could your try Oneiric beta2 and see if the problem is fixed?
** Changed in: friendly-recovery (Ubuntu)
Status: New => Incomplete
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https://bugs.launchpad.net/bugs/782872
Title:
Recovery mode is displayed in unreadable font
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