Basically my supervisor is set in stone about the direction he wants my work to go in. I want to consider all possibilities but he won't even take them seriously.(He admits he is very closed minded). My main gripe is that he admitted that the project was written to get funding and he has no intention of pursuing the avenues there. I, of course, chose the project on the basis of this info.
What should I do?

Maybe one of reasons is you are at the begening stage as it is always difficult to see clearly a direction. Through
you may consider all possibilities but you should focus on one or few of them and work on it. I think when you find a direction and should be stick with what your supervisor specialise in, and push him hard.

Count yourself lucky, having a supervisor that has set a direction from teh earlier stages. P.hD is all about contributing something new to a particular field. You may start from a general view but have to start looking inwards(specific) to be able to produce a work that would be of P.hD standard. Good Luck mate. Having direction early in time can make the 3years programme a memorable years of you life.

to be honest, people said that it is greedy to try as most possibilities as you can. but i do not think so. it is all right for you to try as many chances as possible indeed, but you really need to settled down at one in time in case that you cannot manage more. i know it is painful to cut off some good idears but you do have to do so in some situation :(

i second emmys opinion