JENNY, earlier in this thread you mentioned that this game MIGHT use a 256 color palette. Now we ALL know you were correct about that. THANKS!
That's very interesting. When I installed the DVD version of Lightbringer on Windows 98 and took an in-game screenshot, it was identified as a 16-bit screenshot by Irfanview. It made no difference whether the Windows Desktop was set to 256 color or 16-bit color before starting the game and taking a screenshot -- screenshots were always 16-bit. So it seems the game controls its color depth regardless of how the Desktop is set. And on my vintage computer (Windows 98, 233 MHz processor, Matrox Mystique graphics card) the game wanted to display at 16-bit.
Of course the DVD version of Lightbringer could be different, but there's no arguing with success.
If setting compatibility to 256 colors fixes the issue, that's the important thing.
But it makes me wonder if the game could be setting color number depending on your video card -- and if the game can't detect a video card that's on its list of video cards capable of using 16-bit color, maybe it defaults to using 256 color graphics.