Best I can tell, it's all thanks to a company called Wayport . Anyway, if you have a question of your own, feel free to e-mail it to me or ask away in the Forums . Also, I would like to add another internal hard drive to this machine, as well. I understand that there is another SCSI connector inside the case that I should be able to plug into. Well, since I'm stuck in the airport I figured I could answer both your questions today.
Lets talk about the first one.
The way to test it would be to set your resolution to 640x480 and see if you can increase your colors. With 2 MB of video RAM, you should be ok. But if you only have 1 MB of video RAM, you will only get 256 colors with the internal video. You didn't mention which model Performa you had, so I can't tell you for sure. As far as upgrade cards, any PCI-based video card should work for you.