Lol, Im not suprised this reached this forum, but it did take a while. Its been all over the xbox.com RTCW forums. You can only do it in RTCW.
And no....that guy wasnt an admin. He was a buddyh of mine who is in my clan AoA (you might have even seen me). It is actually quite a simple procedure to put color in your name in RTCW, but its kinda hard to explain. You are on the right track though....you use the ^4, ^2....etc. You just gotta mess around with some files on your box over an FTP/