I have a Intel Corporation Mobile GM965/GL960 Integrated Graphics Controller. Whenever I try to compile the kernel from source (basically to disable modules I do not need and also to change the boot logo) and boot with vga=773 option I end up getting either a blank screen while boot-up or a message saying the 773 video resolution is not supported.

Specifically I get a resolution not supported error (expectedly I guess) when I compile the kernel without making any changes in menuconfig. However even then all the difference there is is in the console mode; once I start xorg and gnome I get a full 1280 X 800 without any problems.
When I enable any (or all) of the following under frame-buffer devices I get a blank screen. I have tried linking them to the kernel permanently as well as trying to enable them as modules.

VGA 16-color graphics support (NEW)
Userspace VESA VGA graphics support (NEW)
Intel 830M/845G/852GM/855GM/865G/915G/945G/945GM/965G/965GM support (EXPERIMENTAL) (NEW)

My notebook probably boots since after a minute when I enter a my username and password and type reboot and press enter it does reboot. I realize that even the RAMFS will reboot my computer if I type reboot but the HDD activity LED makes it pretty clear that the notebook does boot.

I have been trying to compile 2.6.29.1. The weird thing is that when I boot using the kernel supplied by Arch Linux (the distro I am currently using) I get a proper 1024 x 768 display when I boot. I have also tried to select other modes like 800 x 600 modes with varying color depths with no results.

Any help is appreciated.

PS. The term framebuffer is new to me. My apologies if I have misused it.