Problem reducing colours using PerlMagick

I am having problems trying to reduce colors with Quantize
using PerlMagick.

The following script

#!/usr/bin/perl -w
use strict;

use Image::Magick;
my $image = Image::Magick->new;
$image->Read('test.png');
$image->Quantize(colors=>16);
$image->Write('test_reduced.png');


IM 6.2.2 - appears to have no effect.

IM 6.2.8 - reduces the colors but distorts the image as can
be seen 
in these examples

   http://www.fu2
k.org/alex/junk/test.png
   http:/
/www.fu2k.org/alex/junk/test_reduced.png


Am I doing something wrong? Is this a bug in PerlMagick? Any

suggestions as to how else to achieve this?
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