Terminal Server 2003 Color Depth

I have been researching and troubleshooting the following issue.

– Windows 2003 Terminal Server 5.2
– Group Policy Color Depth set to 24 bit
– Verified that the policy was being applied to both the terminal server and client.

Can connect only with 256 colors to Terminal server from XP client. Properties of RDP on the server end and client end have been checked and changed where necessary to accomodate a 24 bit color connection but to no avail.

Anyone seen this before?

Dan Cassat