I should note that when I choose to pick a color for text, I do get a 120-color palette of squares, but not when I choose to pick a color for Fill. This is tested on the Mac Lion OS.
Okay, I just tried this out with FM12 on Windows 7 and it works fine on Windows 7. That is, when I choose to pick a Fill color in layout mode, I am offered the 120-color palette of squares, unlike on Mac Lion. On both platforms, I get the 120-color palette when choosing to pick a Text color.
Further testing shows this is only a problem when choosing to add a Fill color with Inspector. It works fine when using the right-click menu.
I'll report this as a bug in the Problems forum.
I'm just curious since I don't have FM12 to test this yet.
In previous FM versions, you could set the Color Palette in the FileMaker Preferences>Layout tab to 88, 256 or 216. This has a direct bearing on how the color picker is displayed. Do you have the option to set it to 88 in FM12?
You can no longer set that option in FM12 Preferences. What follows are the relevant Preferences screens from FM11 and FM12 side by side: