When Codea recording doesn’t work properly, I use the Reflector app that records the whole iPad screen on your PC or Mac. It’s a bit expensive, though.
I think that the colours are there. If I look at one of the rotating sprites then it seems to get tinted in different squares. So I think it might be that the compression is whiting-out the colours. They are quite subtle colours, so try again with strong colours and see if you get the same effect.
Andrew is saying that Codea compresses the recordings you take so it doesn’t fill up your iPad’s memory too fast. He means there’s a glitch in the compression algorithm that removes some of the colors.