1. A method for generating a color palette from elements having multiple color component values comprising the steps of: a) determining a color proximity of said elements according to a most significant bit of each element color component value followed by less significant bits of each element color component value; b) partitioning said elements into a plurality of groups based on the determined color proximity such that said elements are partitioned according to a most significant bit of each element color component value followed by less significant bits of each element color component value; c) generating a color palette from said plurality of groups; and d) displaying pixels having colors utilizing said generated color palette,