After a long wait, the engineer on the C128 VGA adapter came back with good news. He recalculated resistor values and installed new resistors on the board. Now the 16 colors on the screen are brighter while still maintaining accuracy! This is what the engineer said, "...the color palette [is based] on the description of IBM CGA at http://en.wikipedia.org/wiki/Color_Graphics_Adapter#Color_palette . My new resistor values should represent this very accurately (with about 0.5% deviation, vs. up to nearly 70% deviation with the original values)."
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Light at the end of the tunnel,
Fresno Commodore User Group