Windows 7 comes with updgraded [ downgraded I might say 
] version of remote desktop (RDP) client.
I used to connect to remote machines using 256 colors, when I was using XP and Vista. But, couldn’t do the same on Windows 7 RDP client as it has 32 bit, 24 bit, 16 bit and 15 bit options only under color depth settings. However there’s a solution to this problem.
Create and save a new RDP session and open it with Notepad. Now find the line saying :
session bpp:i:16
or it may have these values (32, 24, 15)
Change it to :
session bpp:i:8
Save the file and try to connect to remote machine now using this saved session.
It worked for me, hopefully it will do for you as well
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#1 by CrymoureFer on November 2, 2009 - 3:11 am
Other variant is possible also
#2 by dave on June 3, 2010 - 7:12 am
cheers! worked well, though I would like to know what number to use for 256 colours?
i tried 256 but i dont think that worked
#3 by dave on June 3, 2010 - 7:15 am
I’m still half asleep sorry, 8bit is the same as 256 colours.
My apologies, and thanks again!
#4 by Waqar on June 11, 2010 - 8:00 am
Yes you will have to use 8 to get 256 colors.