Modern X-ray diffraction applications demand for imaging detectors with large pixel number, high intensity precision, high rate capability and dead time free operation. Detailed studies with a simulation program, which has been developed to investigate the performance of different detector types, show that a large area gaseous single photon counter is very well suited to meet the aforementioned requirements. The prototype detector, which has been built according to the specification profile from the simulations, belongs to a new generation of gaseous detectors using novel technologies for both gas amplification (using a MicroCAT) and position encoding (using 2D resistive charge division). This local interpolation method combines the advantages of a pure pixel read-out (high local and global rate capability) with those of a projecting read-out (small number of channels). The current prototype system has an active area of 28 x 28mm(2) with effectively 140 x140 pixels. Various test measurements at synchrotron light sources with biological samples have been performed demonstrating the good spatial resolution (around 300 mu m FWHM), the high intensity precision (only Poisson limited) and the high rate capability (exceeding 1 MHz spot rate). Moreover, time resolved measurements in the microsecond domain have been performed, and fine angular slicing has been applied to protein crystallography experiments. The detector has a high reliability and robustness, particularly when compared to conventional gaseous detectors, and the extension of the technology used to larger active areas is feasible.