First you need to open up a terminal and type in:
sudo nano /etc/modprobe.d/blacklist-framebuffer
Once you are there you will see a list of different drivers, look for the one that says "vesafb" (this is what worked for me) and put a # in front of it to comment it out. Save that file and then in the terminal again type:
sudo nano /etc/initramfs-tools/modules
This will bring up a list that contains these two lines at the end:
# raid1
# sd_mod
Below those two lines put:
fbcon
vesafb
Save that file and then in the terminal again, type:
sudo update-initramfs -u -k all
Once that's done, type:
sudo nano /boot/grub/menu.lst
Find the line towards the bottom/middle of that starts with "Kernel" and then has a bunch of stuff after it, it should look something like this:
kernel /boot/vmlinuz-2.6.22-14-generic root=UUID=763f09b5-cf76-42a1-8dd2-123a2739b3ab ro quiet splash
Once you find that (it will be the first one you come across most likely), you will need to add a line that says "vga=xxx" where "xxx" is a numer that you will find in the table I've linked to here (It's the table right at the top of the page). You'll probably want the number for your resolution that is in the 16M line since most monitors can handle 16M colors now. But if you're resolution is not there, pick the closest one (for example, mine is 1280x800, so I picked 1024x768 since 1280x1024 would have been to large in one dimension).Then you will save the menu.lst file. Type in:
sudo update-initramfs -u -k all
Then when that has completed reboot your machine and splashy should work now with the proper image coming up.
Good luck