If you remove redhat-logos, grub's splashimage isn't there. This leads to: a) no menu being displayed b) corruption of the video font Either grub should require redhat-logos (ick) or handle this case better.
Ping. If you install via serial console, anaconda is smart enough to not put the spalshimage line in the grub.conf it creates for you. Clearly someone else knows about this too :)
*** Bug 143701 has been marked as a duplicate of this bug. ***
Fixed in rawhide.
What is rawhide? I've done a "yum update" and no new grub has come through.