Yes coloured images don't tint very well, I made a small game in GameMaker yonks ago with nothing but greyscale images all tinted by GM's replace colour function and it looked pretty decent, for programmer art anyway, when applying a tint colour to a already coloured image you have to go with a complementary colour to the existing.
Did you know the AppGameKit colour system supports alpha values?, not exposed to basic because its buggy as hell but while applying a tint to a sprite with a RGBA value I get a nice ghost effect.
Quote: "What's going on?"
That is the 6 million line of code question, as noted above it seems some of the colorization code was disabled for Basic but left exposed in C++ but they don't work very well, drawing a box with an alpha colour works fine, draw one filled 40 alpha then a border over the top and I got a nice selection rect worthy of a AAA title, apply the same method to any other shape and artefacts, Mr Jones would have a field day, so maybe there is something "not quite right" with the windows colour routines.
By the way we see half hearted minimal implementations of almost everything TGC does it would not surprise me if they knew this was broken and just commented out the Basic links to RGBA and called it fixed!
I'll have a poke round the source functions in a bit and see if I can make sense of it.