I have the same problem with a slightly different laptop (Asus A6V, ATI X600 based) but the same resolution. Config file appears correct:
cat /etc/usplash.conf
# Usplash configuration file
xres=1400
yres=1050
I can upload a picture if required
** Changed in: usplash (Ubuntu)
Status: Unconfirmed => Confirmed
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Theme doesn't fill the whole screen
https://launchpad.net/bugs/63306
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