If you're looking for colors I really have to recommend this site:
http://www.colorpicker.com/Just don't forget to remove the #
This isn't the 90s and we don't have to pull one of 216 web safe colors off a chart anymore. Almost everybody has a computer that can display 24-bit color and you can pick out of any of the 4 million or so colors you like.
Other then that, yeah, that's how you do it. If you want to do multiple colors in an event, just do this:
<color:FFFFFF>White</color><color:000000>Black
You don't have to put </color> or </font> after the last one.