If you notice that you don't have any tty's and no boot prompt (when the Ubuntu splashscreen is not enabled), then this might fix your problem.

• Edit /etc/initramfs-tools/modules and add the lines (modules)

fbcon
vesafb

• Comment vesafb in /etc/modprobe.d/blacklist-framebuffer, so the line should look like

# blacklist vesafb

• sudo update-initramfs -u
  

The -u option is used to update your existing initrd image. Please make sure that you first edit the initramfs modules and the blacklist before you update the initramfs.

• Reboot. It should work now.

Launchpad Bug Entry
Ubuntuforums.org - GRUB VGA Modes Broken?
Ubuntuforums.org - HOWTO: Change bootup resolution

Thanks to André for this Devlog entry.