Problem appears both in 2.5.66 and when applying the patch fbdev.diff.gz
as of 31/3.

1. The penguin is only green lines.

No color image support yet. I need to fix that. Easy fix.

2. After X is started the console font rendering is currupted and the
letters take up 2 times its width and 2 times its height by only setting
top left pixel in a 2x2 pixel square (the other 3 pixels are black).
This makes the console unusable since the letters and lines are drawn
50% on top of each other.

??? I will have to test the neofb driver for this. I have this card.

3. vga=0x305 that works in 2.4 kernel only makes the screen blank and
boot hangs.

vga=... works only with the vesafb driver. You need to use the modedb 
command line. See Documentation/fb/modedb.txt for details.

More specific:

After GRUB splash only 25% of the screen is used (80x25).

Okay. That is strange. Might be related to the VESA vga= issue.

The choose resolution question is displayed (vga=ask).
I press [SPACE] and boot continues.
After a while the resolution is switched to 100% (128x48) and before
entering runlevel 5 the console is OK.

You are telling the BIOS to set the resolution and then the native driver 
takes over and fixes the problem.

After X (gdm) is started, switching to console mode makes the problem
described above appear.

Sometimes the boot hangs after:

That is sound card problems. 



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