The problem is not software, it' hardwar/drivers
Look,
I've played StarCraft Broodwar for many hours with only a few lock ups. With a 56/ 76 record in Battlenet (nothing to brag about I know

) I've played coutless hours during which I most always run Skype while actively talking to 2 to 3 other players. The only thing special I do is make sure to drop to a single monitor and open the "Personalize" window in the background before launching the game. This takes care of the color issues 95 percent of the time for me. If during the game, another app pops up in front or I have to ALT/TAB back to the desktop, the colors are ususally screwed until I restart the game, but not so bad that I cannot finish the game at hand. We were playing multi-player via my VPN until everyone finally purchased the BattleChest. Below I'll list all of the relevant hardware and sofware I can think of:
Asus PNE SLI Mainboard
Nvidia NForce Chipset
Nvidia 8800 GTS Driver 8.17.11.9562
Intel 6600 (2.4 GHz) Dual Core
1X4 Dual Channel SLI NEW EGG Memory (I think actually Crucial brand)
32 bit Windows 7 Ultimate
Windows Experience listed at 5.7, disk being the weakest link
Single SATA 150 GB WD Raptor drive, no RAID
Razor Copperhead Mouse/ USB
Generic old clicking Toshiba keyboard, PS/2
Creative XFi Fatality1 Sounds card with latest drivers 6.0.1.1373
Avast Home
Skype
Office 2007 including Outlook 2007
There is a huge amount of experimental software also installed, I'm not too cautious in trying things as I tend to format fairly often, every 6 months or so but the time frame has gotten longer from XP to 7. Never has SC Broodwar caused an an issue after several formats, so going from a clean system to a junked up system seems to not affect performance so I would say software is out but not for sure obviously.
All that said, I think the problem people are experiencing with Broodwar on Windows 7 are caused by hardware or drivers, maybe x64? I haven't had a reason to x64 on my desktop. Tried it, it sucked. Server is a different story. So far in this thread and others, I havent seen anyone put together a pattern to eliminate possibilities to bring this to a down common factor. That's my input for now, everyone should begin including similar specs and we may bring this to a close.