When running gdm with a MGA millenium and then swiching to a text console and back again the redhat logo is gone, this probably means that XFree 40 doesn't save the screen but instead sends an expose event, this does however not work for root window images.
I just reproduced it on an S3 Virge DX / 4mb, so this definetly is an XFree40 generic bug.
Tried this again with Xfree-4.0-0.28 from the beta2/snapshot dir on gribble and this still happens.
Confirmed on a Neomagic NM2160 and a Matrox Mystique under beta3 (XFree-4.0.1-0.30)
This defect is considered MUST-FIX for Winston Beta-5
Bug in the core X driver.
Could someone please enlighten me as to why the fact that it is in the X core, so it only affects just about all cards, is a good reason not to fix it.