System console is unusable with kernel-2.6.32-504.el6.x86_64

Issue

• Unable to use system console with latest kernel(2.6-32-504.el6.x86_64).
• Kernel Mode Setting appears to have stopped working going from 2.6-32-431-29.2.el6.x86_64 to 2.6-32-504.el6.x86_64
• The screen shows tearing and wobbling (its unusable) on kernel-2.6-32-504.el6.x86_64, unless nomodeset is used in Grub.conf. kernel-2.6-32-431-29.2.el6.x86_64 works OK without using nomodeset in the Grub.conf