8.04LTS login screen Problem

[winsnomore]

I installed Ubuntu 8.04 under Fusion 2.0 -- and it was working fine.
Then I dumbly decided to apply all upgrade to get rid of the annoying notification that pops up.

Now my login screen is totally messed up - window is roughly 1800x400 or so .. with 1/3 of the screen on either side is blank and a very small window in the middle ..
I type login and passwd blindly and the user environment is ok .. I get my 1280x800 screen and can work.

I have tried reading and can't find info on the "new boot process.
I presume it's usplash (i have version 0.19 i think)

putting vga=791 in the menu.lst seems to be of no use.

Can anyone advise a solution or where to look?
Thanks

[Partyboi2]

Open a terminal (Applications>Accessories>Terminal) and type


sudo dpkg-reconfigure -phigh xserver-xorg to update xorg.
then
Ctrl+Alt+Backspace to restart xserver.

[winsnomore]

Did read the xorg.conf header and did that much ..
The screen resolutions under Vmware fusion (2.0) and 8.04LTS are still hosed.

My real display is 1440x900 but I can't set that resoltion on the "virtual" linux display -- it gets progressively worse as I increase the size above 1368x768 or so.

Fon'ts become smaller and so does the window!