have you set it so that when the colour has been chosen that the colour is added into a <font> tag?
im pretty sure that the color='' is a hex number so it might be easier to change the drop down box values to their hexidecimal counterparts and then have the name as the name of the colour.
eg:
<select name="color">
<option value="FFFFFF">white</option>
<option selected value="000000">black</option>
<option value="0000FF">blue</option>
<option value="00FFFF">cyan</option>
<option value="707070">gray</option>
<option value="3B5E2B">green</option>
<option value="7D26CD">purple</option>
<option value="CD0000">red</option>
<option value="EEEE00">yellow</option>
<option value="EE7AE9">pink</option>
<option value="7B68EE">lavender</option>
<option value="191970">navy</option>
</select>
on the posted page....
<font color='#".$_POST['color']."'> test color </font>
to make it easier on the user you might want to colour each text in the drop down box, like they do on this forum