Some remarks:
1. menu.lst is the default name in GRUB 2
Previously the default named was
grub.cfg.
2. The menu.lst can be generated
automatically using update-grub.
To add the line, add the
“vga=791 splash quiet” line
to the GRUB_CMDLINE_LINUX value in
/etc/default/grub and the run
update-grub.
I always check the menu.lst after.
Just to make sure I did it
correctly.
In this way the line will be added
automatically every time you add or
change the Linux kernels!
3. When running update-initramfs the -k `uname -r` option can be omitted.
The update-initramfs will run on
current kernel by default.
The -k can be used when you wish to update initramfs for a non running kernel. (By putting its version)
4. The vga option should be according to your screen resolution.
you can see the values in
http://en.wikipedia.org/wiki/VESA_BIOS_Extensions
For example vga=791 is for 1024×768 using 16-bits color.

Enjoy
Erez

Thanks alot. I think splashy is more comfortable to configure than usplash.