This is Ubuntu Server V12.04 32- bit (updated to latest) installed on one system, then moved to new hardware.
On normal startup, terminal output text appears on attached VDU screen in the pattern expected, but font is garbled to the extent that it's unreadable. Everything else seems to working OK.
Problem still remains if booted normally after adding "nomodeset" to the appropriate line in etc/default/grub and running update-grub.
However - after above edit - text output is OK if Edit mode entered in Grub menu (by pressing "E") and then F10 used to resume boot - even if no actual editing is done to the Grub code.
I have run out of ideas from web searches as to where to go from here, so suggestions would be appreciated!