Thanks, just got it working. Thought I'd gone though all those videos, but it appears I missed a couple on second glance.
To answer your question, I'm in TB9.
To get this working, I didn't create a unique thought type, but instead assigned a unique tag. I couldn't find the way to assign the desired color to the "thought type" when I added them all to selection via the thought select window. But if I created a tag then when I clicked the "activate tag" dropdown on the upper left, I was able to see #(tagtitle) in the main window and click on it to change color.
No way to override/wipe custom formatting though? I manually changed the colors of a lot of these tags previously, and they are stubbornly holding onto the colors I assigned rather than taking on the type colors. Still a step in the right direction, anyhow... Thanks again!