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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