GOOD NEWS!
I checked the next evolution of the Xubuntu distro and found it incorporated the newest Intel drivers for my integrated 945 video chipset. So, I did an online update of my installed Xubuntu 8.10 to Jaunty Jackelope 9.04 Alpha 6 and ...
The weird change of color issues are gone! The SU7 rendering screen shows normal colors, shadows and for all appearances is working normally! I still have to disable DRI in the xorg.conf file but again, I don't use any apps that need DRI anyway...
The rest of the applications I have installed also seem to work as well...
So, while I'm still going through the process of loading plugins (all of them that I've installed so far are working properly), I think the SU, Kerkythea and Xubuntu combo will be a success.
Cheers!