256 color image in TImage at 256 colors mode goes to 16 color image in 16.7M colors mode?

I am using C++Builder3 with the latest patch installed on Win95.

I have a TImage on a form, which I am using to display a bitmap my
program generates (Mandelbrot Fractal).  I create a new Bitmap and set
it to 8bpp:
 Graphics::TBitmap *Bitmap = new Graphics::TBitmap();
   Bitmap->Width  = Width;
   Bitmap->Height = Height;
   Bitmap->PixelFormat = 3; //8bpp

and copy the image into it, and then use the line:
 ImageWin->Display->Picture->Graphic = Bitmap;

To display it. It works just great, as long as my Desktop is set to 256
Color mode. I get the mandelbrot fractal, with all 256 colors, and it
looks doubleplusgood.  However, when I set my desktop to TrueColor, or
16.7M colors, the TImage only displays 16 colors, and the mandelbrot
looks really BAD!

It's not my computer, because I have the same problem with a WinNT 4.0
system as well.  I certainly don't want to force people to switch to 256
color mode simply to view the mandelbrot, does anybody know how to fix

I'm also not sure if it's the Timage, TPicture, Tgraphic or Tbitmat
that's causing the problem....

I would appreciate it if you could also CC a copy of your answer to my
e-mail: j...@summet.com as this newsgroup server was not working last
night, and I don't know when it will be working for me again.

Jay W. Summet