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Too many question, let me try to answer your topic.

Setting "nomodeset" disables KMS. Kernel Mode Setting (KMS) provides faster mode switching for X and console. It also provides native-resolution VTs on some laptops and netbooks which, prior to this, would use some standard mode, e.g. 800×600 on a 1024×600 panel.

KMS can be problematic on some ATI and Intel cards. Since you have upgraded you have new drivers that can cause issues like that.

Grub is another story, it was also updated in Fedora 16 (I think to Grub 2 - that is a big change). Pay a visit this site if you still have issues/questions about how this new version works. It is sligtly different: