Yes it has support for more than 16 colors! Just a quick link to anyone who is interested. After more than a year of waiting for a new stable version bochs is here. For anyone who does not know what bochs is here is a pretty good description:
Bochs is a highly portable open source IA-32 (x86) PC emulator written in C++, that runs on most popular platforms. It includes emulation of the Intel x86 CPU, common I/O devices, and a custom BIOS. Currently, Bochs can be compiled to emulate a 386, 486, Pentium, Pentium Pro or AMD64 CPU, including optional MMX, SSE, SSE2 and 3DNow instructions.
Bochs allows you to create a virtual PC inside of your PC. Need to run Windows 2000 once in a _great_ while. Install a full blown version of Windows inside of a bochs virtual PC… some of the more interesting features are VMware virtual image support, 3DNow!/SSE/SSE2 (i.e the virtual processor has these instructions available), and support for high/true color… Go get it Mike!