Originally Posted by Wildstar
A workaround has been posted elsewhere: Start Task Manager, kill the explorer process, then do a File>Run and enter the path of the game's executable. When you're done and want your desktop back, go back to Task Manager and do a File>Run>explorer
The workaround works because the old games do not know how to make the new Win7 API call to hide the Taskbar, which appears to be the cause of the color problem.
I'm running the old dos version of xwing within dosbox on win7 x64 and got strange colors in fullscreen mode throughout the whole game (e.g. on the independence, during briefing, during cutscenes, on missions and so on). Killing explorer.exe and running dosbox/xwing from the taskmanager fixed the issue for me, too. Thanks for the hint.