When I turned on direct X 10 (using Vista 64 bit) it washed out my character's color making their hair look black (they all have hair some version of purple except my white haired one) I didn't figure out what caused it until I looked at my laptop and noticed it didn't have the same problem. Turned off directx 10 interface in game and problem was all gone!
My hardware is a Radeon 2900XT video card, updated catalyst and display drivers.