1) install splashy
sudo apt-get --purge remove usplash
sudo apt-get install splashy
2) change themes
sudo splashy_config -s default
3) After installing new version of splashy, you will want to edit /boot/grub/menu.lst before that take a backup of your menu.lst file
vga reference
depth——640×480——800×600——1024×768——1280×1024
8 bit————769————771—————773—————775
15bit————784————787—————790—————793
16bit————785————788—————791—————794
24bit————786————789—————792—————795
sudo vim /boot/grub/menu.lst
Look for your kernel boot option.In my case with the following line
kernel /boot/vmlinuz-2.6.27-7-generic root=UUID=3dca6051-5877-438c-94c5-f5ff7803d851 ro quiet splash
and add vga=791 at the end of it so it reads similar to the following line
kernel /boot/vmlinuz-2.6.27-7-generic root=UUID=3dca6051-5877-438c-94c5-f5ff7803d851 ro quiet splash vga=792
Save and exit the file.Update your grub using the following command
sudo update-grub
Replace the png file in /etc/splashy/themes/default/background.png withe your own image, and execute following command
update-initramfs -u -k all
Now you need to reboot your system, and you should see a new splashy splash screen on you ubuntu 8.10 system.This is just a workaround. If you know of a way to fix usplash in Ubuntu 8.10 please share with us.