I have added a registry entry to the installer - Win7 Full color fix. No more wkColorFix is needed, the registry entry that I included avoids that. Earlier, after maximizing, once flickered, the game would leave you with the messed up colors until you Press Shift+Pause. Now it doesn't do that. I found that some other 2 features of the Palette fix are not needed for Windows 7 as they cover each other and make an unwanted effect.
The wkColorFix is recommended to be deleted, otherwise you will still experience a color bug after a small "pop-up" message in the game (e.g. joining wormnet, etc).
Or, you can just run this tweak if have 3.6.31.0 installed:
http://stepsfiles.tk/wa/fixes/palettefix31.reg