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David, I hate to disappoint you but you won't be seeing any colour in your DSO's, our eyes just aren't sensitive enough. Shades of grey, that's it.
But you will see colour in the Stars and Planets though, if that's any consolation. (you should see the range of colours in the stars, they are just so beautiful)
For your price range, I'd suggest a 10" Dobsonsian. With that much aperture, on a new moon night, under very dark skies, you may be able to see a tinge of green to the Great Orion Nebula.
May I suggest, first, to try to get to an observing night with one of the Astro Societies. Get a feel for the hobby, look through a few different types of scopes, and ask as many questions as you can think of.
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