Creating a Coloured Display Name
To create a coloured screen name open a conversation window with any contact (Right-click the MSN icon in the system tray [by your computer's clock], select "Send an Instant Message", select the "Other" type and type .@. into the box. This will open a conversation window with noone, but it's enough to send the command).

Display name without colours
You can then use the "/nick" command to actually change your name.
To change the colour of your whole name type /nick, leave a space, then hold ctrl and press the K key. This will open a box of colours.

Select one by either typing its associated number, or clicking it with your mouse. Then type your display name and press enter. Do not copy it to the "Personal Settings" window! This will change your name. Your contact will NOT receive the message.

Command ready to send

Display name colour changed to red (number 4)
To select a background colour you can follow the colour number with a comma [,] and then the number of the background colour, i.e.:
Command for a coloured display name with a background colour

Example of a background colour
You can select multiple colours by repeating the cltr+k process each time you wish to change colour:

Multiple coloured nick command ready to send

Example of a multi-coloured nick
Of course this process also works for background colours (No example to save the eyesight of readers).
You can also return your display name to the original grey-ish colour by using ctrl+o (Original) at any time.
