X works just fine with 8-bit color. Things in the background just use the
unused colors instead of the colors it should.  I used to help this by
limiting my window manager settings to only a couple shades of grey.  I
wouldn't say they are unusable.   Have you set one up to see how it looks?
I had KDE running on one of my sparcs (with 8bit color) and it looked fine.

Dusty


> The way I understand it, we have tons of Sun boxes, but they are
> unusable as thin clients because they are only 8bit graphics.



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