View Color catergories in Outlook 2003

We have some machines with Outlook 2003 and Outlook 2007. If we use colored flags in 2003 we can see the corresponding color category in 2007, but if we select a color category in 2007 we cannot view the color in 2003.

Is there something we missing or another method where both 2003 and 2007 can use the same color coding methods either using colored flags or colored categories?

Keep categories while replying/forwarding

I sort my email by using categories and I do the same for my outgoing emails. Before Outlook 2007, when I forwarded or replied to a message my categories would be retained and my outgoing mail would be sorted automatically. Now when I press forward or reply the message is stripped of its categories. How can I get it to behave like previous versions of Outlook?