Color depth questions...

Hi. I am hopefully getting winXP, but I've been told it only works well in 32bit color (icon transparency etc)

Is this true? My machine can only do 16 color, 256 color, 16bit color and 24 bit color.
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I"m running XP at 24 bit and have been for over a week now. I'm having no problems what-so-ever. Even if it would mess up icon transparency, which i don't think it does, it's a small price to pay for this great OS. I never thought I'd say that