For this to happen, you need Terminal Server 2003
- with Service Pack 2
or - a Terminal Server with hotfix 918679 is installed.
To request the hotfix to fix is issue:
You will have to select the appropiate Windows 32/64-bit version ,the right language and fill in your e-mail. The downloadlink will be send to you shortly.
After installling the hotfix, you need to restart the server and
afterwards you have to change the value of AllowHigherColorDepth (reg_Dword) located at HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Terminal Server from 0 (zero) to 1 (one).
If the key doesn't exist, please create it at the correct registrylocation.
The Micorosoft KB-article has the following title:
The color depth is unexpectedly changed to 8-bit when a high screen-resolution setting is used in a terminal-server session that is connected to a Windows Server 2003-based computer.
and can be found here.