It's confusing because most software takes the standard 8-bit form (0xHH) for the RGB components. That gets translated internally to whatever the hardware can handle. In this case, with 16 colours, the least significant 4 bits are probably just truncated (or something similar). So, setting a component to 0x10 is effectively setting it to 0x1 of the 0x10 hardware possibilities. I suspect that 0xf was just meant to signify white in the original post.
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