This drop-down list lets you specify the maximum number of colors in the final object. The color depths available are:

image\BULLET.gif Monochrome - 2 colors

image\BULLET.gif Grayscale  - 256 shades of gray

image\BULLET.gif 256 color  - 256 colors

image\BULLET.gif Photographic - 16 million (24 bit) colors

Selecting more colors than exist in the original bitmap wastes memory and is not recommended. The only time increasing the colors is useful is when tracing a heavily dithered 256 color bitmap and you want near-photographic quality.

Each of these modes has its own set of parameters which are all saved using the Save Settings button.

Bitmap Tracer