I wanted to post this here,
http://forum.shrapnelgames.com/showthread.php?t=45462
but that thread has been closed.
Just for reference here is a link to an interesting Blog article I found on the net which deals with the color issues on Vista/Win7.
http://go.hopx.net/2010/05/256-color...tdraw-and.html
It details information on an alternate way of fixing the colors instead of closing explorer.exe.
I thought this was well writen and informative so I wanted to share it here.