ansicon and 256 color pallette question

I am working on a pure batch script that one day will be shared on another forum, to colorize a text file that contains a box or border (border tool also in development) around the text.  ansicon installed on a Dell laptop with Windows 7 32bit displays only 16 colors. I hope someone can advise me whether or not ansicon is limited to 16 colors.

I read that 256 colors are “supported” but I am not sure what that means. Thank you.