Question for all the lore people:

All the towns can be said to be 'owned' by someone. There is a http://www.uesp.net/wiki/File:MW-map-Great_House_Influence.jpg that shows colors for those groups. My question is...are those colors lore correct? If they are not...what would be the lore correct colors to use?

ISTR that there was something explaining the colors of the Hlaalu, Redoran and Telvanni Houses, but maybe it was something I ran across from one of the LGNPC mods.

Short answer... not exactly.

Longer answer...

Redoran = http://www.uesp.net/wiki/Morrowind:Red_Book_of_3E_426

Hlaalu = http://www.uesp.net/wiki/Morrowind:Yellow_Book_of_3E_426

Telvanni = http://www.uesp.net/wiki/Morrowind:Brown_Book_of_3E_426

Those check out.

The empire is actually generally associated with red as well. Due to the Red Diamond. So you may have a dilemma there. You could possibly go with different hues.

House Dagoth as green? I don't think we actually have a "[Insert Color] Book of House Dagoth" - though that would be interesting to run across! All the Dagoth banners are ashy gray and red. So maybe gray for House Dagoth?

The temple is associated with the Tribunal, and I'd say it's hard to pin a color on them and I don't now of any that is "lore correct." White for goodness/purity/etc is all I've got. They love that sort of stuff.

From the MW concept art book: Redoran colors are bonewhite, ivory, dirty brass, salmon red. So probably it could be salmon red for Redoran and scarlet for the Empire. Though purple is also a good choice: in our reality Roman emperors and magistrates wore purple togas, and Imperial legionnaires in MW have purple skirts.

Temple robes and clothing parts of Ordinator armor are blue, as well as benners in Vivec, so probably it's blue color for the Temple. But blue could be also the color of Indoril since these two are very tightly connected.

Tamriel Rebuilt has white for Indoril. But for some reason I've always thought that white is the color of Dres. Don't know why: may be I've read it somewhere, but it could be just a memory trick.

House Dagoth: I agree with Melchior Dahrk - red and gray. (In the past - before the Battle at the red Mountain - perhaps silver, red and black. At least when I start making House Dagoth armor I'll choose these colors for it. )

White was used for Indoril on http://images.uesp.net/5/55/MW-map-Morrowind_Concept.jpg - of course it also uses red for Telvanni and Orange for Redoran, so one could question the other colors as well.