I'm not sure if this the same bug I'm seeing, but it sounds similar. Using a Thinkpad T42p with ATI M10 NT/FireGL Mobility T2 chipset.
If I have xserver-xorg-video-vesa installed and "splash" set in kernel command line arguments then I will get the "Ubuntu is running in low-graphics mode" error message and be unable to continue further. Solution is either to remove xserver-xorg-video-vesa or to remove "splash" option from kernel command line arguments. I haven't tried installing gdm.
I'm not sure if this the same bug I'm seeing, but it sounds similar. Using a Thinkpad T42p with ATI M10 NT/FireGL Mobility T2 chipset.
If I have xserver- xorg-video- vesa installed and "splash" set in kernel command line arguments then I will get the "Ubuntu is running in low-graphics mode" error message and be unable to continue further. Solution is either to remove xserver- xorg-video- vesa or to remove "splash" option from kernel command line arguments. I haven't tried installing gdm.