1. Install one of (or all of) the kernel splashimage packages, being:
   • grub-splashimages
   • kubuntu-grub-splashimages
   • there are others but these are enough
2. In /boot/grub/menu.lst remove the lines added but any of the splashimage packages (usually the first couple of lines), specifying a splash image, we want it to be automagically done.
3. In /boot/grub/menu.lst Comment out hidemenu
4. In /boot/grub/menu.lst Change timeout to something more reasonable than 3 (I used 10)
5. In /boot/grub/menu.lst Change your # kopt=root=/dev/hdXX ro by adding an apropriate vga=XXX to it
6. symlink /boot/grub/splash.xpm.gz to a file in /boot/grub/splashimages/
7. run update-grub
8. Reboot!

See you results. Now if you want a customized one, open the ones already there and use them for a guide to making new ones.

Here are the vga modes (vga=XXX) I have found. First number is the hexadecimal(base16) mode number (0x before it required should you use it), second number in parenthesis is the decimal(base10) mode number, used as is:

# of Colors	640x400	640x480	800x600	1024x768	1152x864	1280x1024	1400x1050	1600x1200
4 bits	-	-	0x302 (770)	-	-	-	-	-
8 bits	0x300 (768)	0x301 (769)	0x303 (771)	0x305 (773)	0x161 (353)	0x307 (775)	-	0x31C (796)
15 bits	-	0x310 (784)	0x313 (787)	0x316 (790)	0x162 (354)	0x319 (793)	0x340 (832)	0x31D (797)
16 bits	-	0x311 (785)	0x314 (788)	0x317 (791)	0x163 (355)	0x31A (794)	0x341 (833)	0x31E (798)
24 bits	-	0x312 (786)	0x315 (789)	0x318 (792)	-	0x31B (795)	0x342 (834)	0x31F (799)
32 bits	-	-	-	-	0x164 (356)	-	-	-

SELECT * FROM scog WHERE ethics > 0;

0 rows returned.