How to set label color for "Utilities" folder in Lion?
Lion disables most of the customizations that were once available in versions prior to 10.7. As to why that is I can only speculate, however, it can't be done like before. I personally do not recommend any type of SIMBL plug-in either, for it can cause more grief than happiness. I usually try and find the most sensible work-around for such things without having to go to extremes.



Here's what I do:


Highlight the Utilities folder
Press ⌘ L (Make alias)
Rename the [Utilites alias] to [Utilities ] ↙ leaving and extra space behind the 's'
Open Terminal and type the following:

sudo chflags hidden /Applications/Utilities


This will hide the original Utilities folder, leaving your new alias ready to label with your color of choice.

If you want to un-hide the original Utilities folder type nohidden instead of hidden. I hide it, since there's no point to having the Utilities alias and the original Utilities folder sitting there.