** I'm VERY new to ANYTHING but windows ** - FYI
I got that setup to work by using X-Deep/32 which has a "Simulate 8-bit PseudoColour Visual" option in it's setup.
- Main Site
- Screen Shot of Configuration
In this setup however, it was reccommended (perhaps it's required) that an additional program called PuTTY (SSH Client) be used.
However, despite the fact this setup will get you beyond that error, I had issues with the keyboard. It would work initially and then after a short while would not log keystrokes when in a text box (cursor stopped flashing).
Anyway, this might help you get past one problem. Good luck!
P.S. Help from anyone with the keyboard issue would be great, seeing as how I am now messing around trying to get Cygwin to get by the "24/8 PseudoColour" problem.