Viewml - JPEG GIF image 8bpp; IMLIB error: Cannot find palette. A Palette is required for this m

Hi,
We have developed a custom board with StrongARM processor. support for the
LCD thru the frame buffer driver is available. Access to the frame buffer is
through the XWindows  XFbdev. 
  When i run the viewml, i can  browse the web. but the images present in
the web site dont get displayed. However all other contents of the web site
get displayed. The LCD we are having is 320x240 passive.  and it is 8bpp.
And the frame buffer driver sets the FB_VISUAL_PSEUDOCOLOR for display mode,
as it is 8bpp.
The error message i get is  
IMLIB error: Cannot find palette. A Palette is required for this mode.

in spite of this message i can see the content of the web site.

The same Xfbdev and viewml binaries works well when i use VGA card instead
of the LCD. The VGA card supports 16bpp.

Should i infer that to display images we need TRUEOCOLOR support from the
frame buffer driver and hence a 16bpp support???   
Any suggestion / hint / link to get the images on viewml under 8bpp would be
appreciated.

-guru

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