diff --git a/src/devices/video/ppu2c0x_vt.cpp b/src/devices/video/ppu2c0x_vt.cpp
index 1246fa347ae..25ff75be59e 100644
--- a/src/devices/video/ppu2c0x_vt.cpp
+++ b/src/devices/video/ppu2c0x_vt.cpp
@@ -40,10 +40,21 @@ READ8_MEMBER(ppu_vt03_device::palette_read)
 
 void ppu_vt03_device::set_new_pen(int i)
 {
-	uint16_t palval = (m_newpal[i&0x7f] & 0x3f) | ((m_newpal[(i&0x7f)+0x80] & 0x3f)<<6);
-	// &0x3f so we don't attempt to use any of the extended colours right now because
-	// I haven't managed to work out the format
-	m_palette->set_pen_indirect(i&0x7f,palval&0x3f);
+	if(m_pal_mode == PAL_MODE_NEW_RGB) {
+		
+		uint16_t rgbval = (m_newpal[i&0x7f] & 0xff) | ((m_newpal[(i&0x7f)+0x80] & 0xff)<<8);
+		logerror ("pal %d rgb %04x\n",i,rgbval);
+		uint8_t blue = (rgbval & 0x001f) << 3;
+		uint8_t green = (rgbval & 0x3e0) >> 2;
+		uint8_t red  = (rgbval & 0x7C00) >> 7;
+		m_palette->set_pen_color(i & 0x7f, rgb_t(red, green, blue));
+	} else {
+		uint16_t palval = (m_newpal[i&0x7f] & 0x3f) | ((m_newpal[(i&0x7f)+0x80] & 0x3f)<<6);
+		// &0x3f so we don't attempt to use any of the extended colours right now because
+		// I haven't managed to work out the format
+		m_palette->set_pen_indirect(i&0x7f,palval&0x3f);
+	}
+
 }
 
 WRITE8_MEMBER(ppu_vt03_device::palette_write)
diff --git a/src/devices/video/ppu2c0x_vt.h b/src/devices/video/ppu2c0x_vt.h
index 0666ee5c8bd..757254ee966 100644
--- a/src/devices/video/ppu2c0x_vt.h
+++ b/src/devices/video/ppu2c0x_vt.h
@@ -25,13 +25,25 @@
 #define MCFG_PPU_VT03_READ_SP_CB(_devcb) \
 	devcb = &ppu_vt03_device::set_read_sp_callback(*device, DEVCB_##_devcb);
 
+#define MCFG_PPU_VT03_MODIFY MCFG_DEVICE_MODIFY
+
+#define MCFG_PPU_VT03_SET_PAL_MODE(pmode) \
+	ppu_vt03_device::set_palette_mode(*device, pmode);
+
+enum vtxx_pal_mode {
+	PAL_MODE_VT0x,
+	PAL_MODE_NEW_RGB,
+};
+
 class ppu_vt03_device : public ppu2c0x_device {
 public:
 	ppu_vt03_device(const machine_config &mconfig, const char *tag, device_t *owner, uint32_t clock);
 
 	template <class Object> static devcb_base &set_read_bg_callback(device_t &device, Object &&cb) { return downcast<ppu_vt03_device &>(device).m_read_bg.set_callback(std::forward<Object>(cb)); }
 	template <class Object> static devcb_base &set_read_sp_callback(device_t &device, Object &&cb) { return downcast<ppu_vt03_device &>(device).m_read_sp.set_callback(std::forward<Object>(cb)); }
-
+	
+	static void set_palette_mode(device_t &device, vtxx_pal_mode pmode) { downcast<ppu_vt03_device &>(device).m_pal_mode = pmode; }
+	
 	virtual DECLARE_READ8_MEMBER(read) override;
 	virtual DECLARE_WRITE8_MEMBER(write) override;
 	virtual DECLARE_READ8_MEMBER(palette_read) override;
@@ -73,7 +85,9 @@ private:
 	palette_device *m_palette;
 
 	uint8_t m_201x_regs[0x20];
-
+	
+	vtxx_pal_mode m_pal_mode = PAL_MODE_VT0x;
+	
 	void set_2010_reg(uint8_t data);
 
 	void set_new_pen(int i);
diff --git a/src/mame/drivers/nes_vt.cpp b/src/mame/drivers/nes_vt.cpp
index 5b3f0ab6f41..91e01c2865a 100644
--- a/src/mame/drivers/nes_vt.cpp
+++ b/src/mame/drivers/nes_vt.cpp
@@ -121,7 +121,7 @@ private:
 	void scanline_irq(int scanline, int vblank, int blanked);
 	uint8_t m_410x[0xc];
 	
-	uint8_t vdma_ctrl;
+	uint8_t m_vdma_ctrl;
 	
 	int m_timer_irq_enabled;
 	int m_timer_running;
@@ -749,9 +749,9 @@ WRITE8_MEMBER(nes_vt_state::nes_vh_sprite_dma_w)
 
 WRITE8_MEMBER(nes_vt_state::vt_hh_sprite_dma_w)
 {
-	uint8_t dma_mode = vdma_ctrl & 0x01;
-	uint8_t dma_len  = (vdma_ctrl >> 1) & 0x07;
-	uint8_t src_nib_74 =  (vdma_ctrl >> 4) & 0x0F;
+	uint8_t dma_mode = m_vdma_ctrl & 0x01;
+	uint8_t dma_len  = (m_vdma_ctrl >> 1) & 0x07;
+	uint8_t src_nib_74 =  (m_vdma_ctrl >> 4) & 0x0F;
 	int length = 256;
 	switch(dma_len) {
 		case 0x0: length = 256; break;
@@ -761,7 +761,7 @@ WRITE8_MEMBER(nes_vt_state::vt_hh_sprite_dma_w)
 		case 0x7: length = 128; break;
 	}
 	uint16_t src_addr = (data << 8) | (src_nib_74 << 4);
-	logerror("vthh dma start ctrl=%02x addr=%04x\n", vdma_ctrl, src_addr);
+	logerror("vthh dma start ctrl=%02x addr=%04x\n", m_vdma_ctrl, src_addr);
 	for (int i = 0; i < length; i++)
 	{
 		uint8_t spriteData = space.read_byte(src_addr + i);
@@ -779,7 +779,7 @@ WRITE8_MEMBER(nes_vt_state::vt_hh_sprite_dma_w)
 
 WRITE8_MEMBER(nes_vt_state::vt03_4034_w)
 {
-	vdma_ctrl = data;
+	m_vdma_ctrl = data;
 }
 
 static ADDRESS_MAP_START( nes_vt_map, AS_PROGRAM, 8, nes_vt_state )
@@ -935,6 +935,8 @@ MACHINE_CONFIG_END
 static MACHINE_CONFIG_DERIVED( nes_vt_hh, nes_vt_xx )
 	MCFG_CPU_MODIFY("maincpu")
 	MCFG_CPU_PROGRAM_MAP(nes_vt_hh_map)
+	MCFG_PPU_VT03_MODIFY("ppu")
+	MCFG_PPU_VT03_SET_PAL_MODE(PAL_MODE_NEW_RGB);
 MACHINE_CONFIG_END
 
 static INPUT_PORTS_START( nes_vt )