Why are fewer colors being displayed than expected on the Emulator?
If you are getting a low-resolution display for a 16bit image on the 2.0 emulator, check the device attributes using the Device Configurator and set the Color Depth to 16 bit. If you are still getting a poor resolution (for an 8 bit or 16 bit), check if you have used the IIMAGE_SetParm() function to set improper parameters for the image to be displayed.