To use colour in your name, just open a conversation window, type /nick and a space and press ctrl-k. Then click the colour you want, type your name and press enter. If you want to use multiple colours, just use ctrl-k in your name multiple times, right before where you want the colour to show up. Take a look at the following example:
Additionally, you can also take a look at
http://www.msgplus.net/help_tutorials.php?tut=contactlist-colors
Note: you can also search the forums by clicking the search link on top of the page. It allows you to find answers to many questions quicker