I made a quick color life a few years ago. I wanted the rules to be simple like life itself, so this is what I came up with:
* Each cell has a color attribute. When generating the initial board, colors are randomly assigned.
* When a new cell is created it inherits the most prevalent color of the surrounding cells, or if there is a tie, any one of the the top colors may be used.
(Randomly assigned colors aren't filtered, so it is possible for dark cells to exist that are the same color as the background.)
Here is the result: http://www.node99.net/content/color_life/index.html