Yeah, I'm going to definitely check all the loot before implementing these guys. As for always being red, check the mobiles for something along the lines of always murderer = true
I haven't really taken a good look at this yet either.
I found the part that you need to change
In the vendors section, if you don't want them red change the true in these lines:
Code:
public override bool AlwaysMurderer { get { return true; } }
to false and you should be good to go.