Not sure about the 4096 color thing.
On the one hand it does say this:
This RGB converter also helps upgrade 480i component RGB video signals from DVD player or other video devices to progressive scan VGA type for high resolution presentation.
Which if they say you can use it for DVDs that would suggest it does more than 4096 colors or your movies would look like crap.
But, on the other hand they are very specific about calling it a CGA converter over and over again, but I'm pretty sure CGA "provides a fixed set of "16" different colors". As you'll find if you google CGA and number of colors. I tried to hook a CGA monitor up to my Amiga 1000 once and was very disapointed when I found this out.
On the 3rd hand you could just contact them and see and then let us all know. :-)
