Adding color labels to Mail?

I believe Mail on 10.7 already gives you coloured flags to use.

I'm sticking to Snow Leo, so I just use:
> Format > Show Colors (shift+cmd+c)

You can also set up Mail rules to add colour.

Or you can use some script to do it:
http://hints.macworld.com/article.php?story=20040621002608797
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