Interesting tidbit about reds. I x-ferred a red to TC1. I joined a guild with other characters and then joined VvV on the red character. I became green to my guild mates. I was still considered a murderer and unable to travel to trammel but I appeared greed. I still appeared red to non-VvV participants.
I attacked the red-VvV character on a non-VvV character. The non-VvV character did not turn orange.
You lawfully agressed on a VvV player, so the attacker did not turn orange.
I attacked a blue-VvV character on a non-VvV character - The non-VvV character DID turn orange.
You unlawfully agressed on a VvV player, so you turned orange.
I killed a blue-VvV character on a non-VvV character - I was not able to give the non-VvV character a murder count. So it seems to me that if you join VvV your days of reporting people for murder are over.
Your blue-non VvV is now orange and open to attack by all VvV players. At the time your blue was orange.
The blue-VvV character I killed with a non-VvV character did not suffer stat loss.
This is a bug and will be fixed in the next update.