I have 3 HP DL380 (g2/g3) servers at home.
Personally, i only use iLO for the original installation of the operating system. Since i can mount an ISO remotely and install from there, (saves going under the house to do it).
Once I have the operating system, and ssh installed, i do everything from there (i dont run X on my servers, so thats not an issue for me, but you would be well served in using VNC to handle X based remote control).
That being said, to answer your question, it is most likely the frame buffer causing the problem.
If you are using grub legacy, its as simple as modifying "/boot/grub/menu.lst" and appending "vga=xxx" to the kernel line. Using either the hex or decimal numbers show in this table.
Code:
# FRAMEBUFFER RESOLUTION SETTINGS
# +-------------------------------------------------+
# | 640x480 800x600 1024x768 1280x1024
# ----+--------------------------------------------
# 256 | 0x301=769 0x303=771 0x305=773 0x307=775
# 32K | 0x310=784 0x313=787 0x316=790 0x319=793
# 64K | 0x311=785 0x314=788 0x317=791 0x31A=794
# 16M | 0x312=786 0x315=789 0x318=792 0x31B=795
# +-------------------------------------------------+
I am not as familiar with grub 2, but IIRC it can be set in /boot/grub.cfg with
Code:
set gfxpayload=1024x768x32
I dont think iLO is really designed for remote administration on a regular basis, more so it is designed for when SSH/VNC isn't available for whatever reason (firewall rules, accidentally killing ssh, etc)
As for displaying the hostname in grub, this wont ever be enabled by default, and cant be set dynamically, because grub has no idea of what the hostname is. It is possible to modify the boot menu/splash screen images, to include it, but if you change the hostname of the linux system itself, this would require modifying the image again to reflect the change.