Current driver display too small...

I just bought a LIVING BOOKS software for my son and I installed it per the pop up instructions on the screen...but when I try to run/play it I get a "living books window" that states "Current display driver palette too small" What does this mean and how do I fix it?

 

I found this.
I don't know if it applies or not though.
http://www.orcad.com/Technical/Library/Schematic/ContentPage/tn/tn48.htm

Hope it helps

 

Try going to start>settings>active desktop>customize my desktop>settings tab. Click the down arrow in the colors box and let me know what the last listing is and if you are set to that.

 

Right click on the desktop and select Properties>settings. Report what is listed under “Colors”.

 

Thats what I said.

 

Sorry it took me so long to reply...my color setting is currently at 800x600 but I have already tried to adjust that setting to the smallest and the biggest (from the advise of a friend) and it didn't work...the error message still popped up...I went to the website posted by savvy lady and that seemed confusing....need more help...I'm a computer dum dum...sorry