I had a similar problem when I put in a new video card. I used the disk that
came with it to provide the drivers and they were already obsolete. Even
then, I downloaded newer drivers and still couldn't get it out of 16 colors or off 480x 600.
I took the video card out and tried to return it and was told that after you
have the video card in, most current drivers downloaded, you need to change
the adapter refresh rate. For some reason the adapter refresh rate defaults
to "unknown" and as long as that's what it is set at you can't get out of 16
colors. I took the card home, reinstalled it and darn if it wasn't true. I
changed the adapter refresh from "unknown" to "adapter default". apply
reboot; then changed it from "adapter default" to "optimal" and apply,
reboot. (You have to do this in increments because if you go from "unknown"
to "optimal" it defaults back to "unknown". Try right clicking on
desktop>properties> settings tab> advanced button> adapter tab and change it if on "unknown". Just worth a try. But keep in mind that you may need updated drivers from maker's web site.
This may not help you but may be worth a try. It has happened to me four different times for no reason that I can figure out but all of a sudden my refresh rate is on "unknown".