Thanks for your reply. I found the same Wikipedia entry and it helped me realize that this was somehow possible but didn't give me enough to actually do it. The Gentoo splash link also confirms it's possible.
I still think this has to do with the /etc/fb.modes entries which I'm clueless on how to generate the proper values for the 1680x1050x256 mode. Here is a sample of a mode listed in my /etc/fb.modes file:
#
#1280x1024, 43 Hz, Interlaced (80.00 MHz dotclock)
#
#HorizontalVertical
#Resolution10241024
#Scan Frequency50.000 kHz87.03 Hz
#Sync Width1.000 us0.100 ms
#10 chars10 lines
#Front Porch1.000 us0.500 ms
#10 chars50 lines
#Back Porch2.000 us0.650 ms
#20 chars65 lines
#Active Time16.000 us10.240 ms
#160 chars1024 lines
#Blank Time4.000 us1.250 ms
#40 chars125 lines
#Polaritypositivepositive
#
mode "1280x1024-43-lace"
# D: 80.00 MHz, H: 50.000 kHz, V: 87.03 Hz
geometry 1024 1024 1024 1024 8
timings 12500 160 80 65 50 80 10
laced true
hsync high
vsync high
endmode
Clear as mud to me!