I'll give you a simple explaination for the poor OC ability of the T-Bred.
The K7 is on its last leg. It's an old core, soon to go the way of the K6 and K5.
It doesn't overclock well cause the core is too small for thermal transfer to occur at the level that it did with the Palomino.
The red vs green debate can be solved easily as well. Just like any other core that has come into existance, its safe to say that a few revisions have occured since the T-bred was initially built. Remember AXIA vs. AVIA (or whatever the "inferior" oc'er was)? The red CPUs might represent the initial batches the were run that operate at their speced speed. Just what they are supposed to do. There is nothing "wrong" with them, they are just a less refined version of the T-Bred core. T-Breds, regardless of reports, must have been running off the fab lines since January or earlier, so that AMD would have enough to fill the OEM channel and have some leftovers for the retail channels. But, the flip side is that there have been mobile versions since April or so, which run at lower clockspeeds, and theoretcially could be where the initial batches went.
AMD doesn't give a damn about the K7 anymore. It's budget, and they only have 2, maybe 3 speed bumps for the T-Bred and Barton before the K8 appears. After that, the K7 will be relegated to the budget/mainstream market, and after a few more months, will be retired completely when the clockspeed ceiling is reached for the budget line. A budget K8 will replace it, probably around the time of the .09 micron intro, and the wonderful K7 and Socket A will vanish from the minds of performance freaks. Why would AMD invest more capital and R&D into a dying core when they could be spending those man-hours revising the K8 into some uber-CPU, capable of ripping holes in the fabric of time? It makes no sense, either from an engineering perspective, or a sales/marketing perspective.
It's dying, prepare the memorial service, and give it a decent burial instead of saying what it should be or what it will be when you have a different colored packaging. Just give it up, guys. Spend your time working more hours to buy everything needed to get a Hammer or Prescott system.
-SammyBoy