However, I am using 2007 on Vista
Me too.
The info works fine for Outlook 2003 and 2007.
"To color code your mail coming from someone specific:
- Select the mail coming from someone you want to select a color for
- Press Tools-> Organize. A pane will scroll down now
- On the left side of that pane choose "Using Colors" The name of the sender
will now be visible in the above rule
- Choose the option "From". You'll see the name field automatically
adjusting when you select a message from someone else
- Choose a color from the dropdown list and press "Apply Color"."
Alternatively:
- View > Current View > Customise Current View...
- Click the Automatic Formatting button
- Add a new Formatting rule with the required color and specify the person
via the Condition button.