Heh, beat me to it, so I'll just add a couple of marginal things that others may find useful.
Changing
Code:
<bWhiteFlag>0</bWhiteFlag>
to
Code:
<bWhiteFlag>2</bWhiteFlag>
(I experimented) gets you an XML error at startup. It appears to be a binary variable.
The file C:\Program Files\Firaxis Games\Sid Meier's Civilization 4\Assets\XML\Interface\CIV4ColorVals.xml enumerates the available colors and their values. Changing these numbers would (presumably) adjust the appearance of the color. It looks like this:
Code:
<ColorVal>
<Type>COLOR_RED</Type>
<fRed>1.00</fRed>
<fGreen>0.00</fGreen>
<fBlue>0.00</fBlue>
<fAlpha>1.00</fAlpha>
</ColorVal>
<ColorVal>
<Type>COLOR_PLAYER_DARK_RED</Type>
<fRed>0.62</fRed>
<fGreen>0.00</fGreen>
<fBlue>0.00</fBlue>
<fAlpha>1.00</fAlpha>
</ColorVal>
Note that the "Dark Red" color is not used as a default primary civilization color (it is used as a secondary color), so I changed the English to this color, so that I did not have to change Japan's primary from "Red". The distinction between the two is no worse than the White/Gray distinction.
For the newbies: the "Primary" color is the color of the civilization's borders. It is also one of the colors that appears on the default flag and in color-coded text refering to that civilization. The "Secondary" color also appears on the default flag, depending on how those colors were assigned.
If you have a typo or otherwise enter an invalid value for the design of the flag (e.g., put down "FlagDECAL_USS.dds" instead of "FladDECAL_USA.dds",) the flag will appear as a plain banner colored the secondary color.
Hope all this is helpful.