Emacs gets wrong list of colors from system?

[Negated Void]

So i've been playing with choosing a terminal emulator, and I discovered that my emacs is not pulling the correct list of colors.

My understanding is that it should be using "/usr/share/X11/rgb.txt" or "/usr/share/emacs/24.2/etc/rgb.txt" to get color names like "gray60" and stuff.

Both of those files exist / have proper things in them.

However, if I open emacs and run M-x list-colors-display, the first sixteen colors have names and then they're all "color-16" "color-17" ... "color-255".

What's wrong? I tried in both Konsole and rxvt-unicode, with my TERM variable set to xterm-256color and rxvt-unicode-256color.

Also, not the main focus, by my emacs chooses ugly colors if i goto rxvt-unicode-256color but if i set the TERM to xterm-256color it looks right. Not sure if related.