I have been playing with Vex IQ and the color sensor. I decided to use a red, then green card to control the movement of the bot. I built a red/green flag controller, which is controlled by a Hexbug controller and the motor with the position sensor.
I think that Rube Goldberg might have been pleased, but this setup was a way to try to use the color sensor. Programming for the bot used Vex IQ Blocks.
Some pictures of my setup follow: