Fixed
OK, my situation was very similar to yours, except for one thing.
I was using SuSE 8.2 First I suggest you search in YaST2 package installation for the words "splash", make sure the two splash screen related packages are installed properly. [bootsplash] and [bootsplash-theme-SuSE].
Next login in as root. If you don't know how to do this then press ALT+F2 and in the window that pops up type konsole. Shortly a console window should open up. At the prompt type su and following that you're root admin password.
After that is all done issue the command mkinitrd by typing it in at the prompt. You now should be looking for "- splash picture (1024x768)". If that is there, then reboot your system and it should appear next time the system boots up.
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