You are on the right track Stevebe
![Smile :)](./images/smilies/icon_e_smile.gif)
As most of you know, images are organized by pixels in rows and columns. If you append all rows on another, beginning from the first in the upper side, you get a looong stream of pixels. These days, where memory and transmitting costs are low, image formats mostly used to define each pixels color as a set of RGB values. Each color component (red, green, blue) is defined as an 8 bit value, making up to 16 mio possible colors. So each pixel can have a color as he like.
In the old days (stevebe, you will know them, like me
![Wink ;-)](./images/smilies/icon_e_wink.gif)
developers did more effort on saving storage, even for images. Also, the computers did not have such graphics capabilities like today. As i started with PCs, it was common to have an CGA card, having 16 colors at 160x200 pixels, or 4 simultaneously colors at 320x 200, which was called "high res"
Now, think of an image with limited colors, where each pixel can have one of a fixed palette inks. So each pixel only describes what ink it uses and not defines the ink itself. This leads to a needed storage of 2 bits per pixel at min. (black/white) up to 8 (or more) bits per pixel for color images. How many bits are used depends on the number of simultaneously colors you need to provide.
To get it down to bits and bytes, here is a very basic example:
You know "painting by numbers"? Imagine you have a color palette, numbered 1 to 4 and you can mix any color in each number as you like. Then you have a canvas like an excel sheet grid. To create an image you wrote a palette number into each cell. Next you fill this cell with the color of your palette. E.g. color #1 is deep red, #2 is yellow, #3 black, #4 grass green. Put deep red into each cell labeled with #1, and so forth. Got it?
To count from 0-3 (4 values) you need 2 bits. 00 = 0, 11 = 3. So your color resolution is 2 bit. The palette has a size of 4. Each palettes ink can be defined as RGB values, using 3 bytes. Now each pixel needs 2 bit to describe the ink used. If you have 10 pixels per row and 5 rows, you got 50 pixels in sum, needing 50 * 2 bits = 100 bit of storage. 100 bits fit into 84 bytes.
This is where the Convers+ comes into play, because it's graphics capabilities are limited by the LCD controller to 5 bit per color component, which makes 65536 possible colors in the color table. But i can only display 256 inks in parallel.