I have Windows XP Pro SP1 and have installed PowerToys Tweak UI for XP SP1 and after restarting the system i got desktop icons in 16bit mode showing in 256 colours (before that they were showing in 16bit mode graphics). I've looked in tweak ui settings related to desktop icons , and even tried Desktop icons repair option of Tweak UI but icons still remains in 256 colours. What seems to be the problem? Thanks!

I have this same problem on two computers. Any help would be appreciated.

The problem is that TweakUI messes with the registry when you set some settings and sets the minimum color depth to 32-bits for the higher-color icons. All you have to do is change the following registry key:

HKEY_CURRENT_USER\Control Panel\Desktop\WindowMetrics\Shell Icon BPP

Change the value from 32 to 16. After a restart the problem should be fixed.