Detecting the 8bpp color depth

I understand that win 2000 terminal server only supports 8-bit color
through remote desktop. I have a client that is using an image display
program I wrote and this is causing the images to look horrible. I
tried applying dithering to make the image look correct if
GetDeviceCaps tells me we are in 8-bit mode, but the problem is still
there.

My question is this:
Will GetDeviceCaps return 8bpp in this situation? Or will it return
whatever the server (or client?) bit depth is set at? I am having
difficulty setting up an environment where I can test this so, if
anybody knows the answer, please let me know.

Thanks!
Mike