I have issued a support request with Autodesk on this. When the color is loaded "FromNames", the ColorMethod stays at "ByLayer" instead of changing to "ByColor". When it is manually changed by selecting from a ColorBook in the Layer Manager, it shows up as "ByColor".
I have attached a VB.NET project for those wishing to mess around with this issue.
I'll let you know when I hear from Autodesk if someone else doesn't post a solution sooner.
Take care.
Jerry