The splash init script just has "before xdm". This is a good dependency for when the system boots. However, if we turn parallel startup on, change to single user and then back to multi-user, splash starts right away as it doesn't depend on anything. This causes errors as it cannot find the jpeg libraries found in /usr Solution is to add this to the depend function use localmount
This is fixed in splashutils-1.3-r3. Thanks for the solution :)