Let me answer your first question:
Let's remember why we are here and what we are trying to teach - Respect for the flag. As scouts, we have many uniforms that we wear. Typically specified by the unit, one uniform could include a shirt with all the proper patches, a neckerchief and slide, a belt, a hat, pants, and socks (and I may have left something off). In another unit it might be just the shirt. On outings, the uniform might be a T-shirt special to the unit. It might even be play clothes. You can get real picky (and some units do) and say that if you are supposed to have your neckerchief and do not, you are not in uniform and do not salute with the scout salute. Our Troop defines what we wear as the "Uniform of the Day" and proper attire is specified by the Senior Patrol Leader. It depends on what we are doing but in any case defines us as scouts and recognizes our unity within our unit. When in the Uniform of the Day, a scout salutes with the proper scout salute. We are scouts, we are properly attired, and we respectfully salute the flag with the scout salute. Enough said.
Do members of the color salute?
If you are holding something - no - especially if it is the flag. However, Color Guard members whose hands are free should salute. If you are putting up a flag, and one is holding the flag and one is holding the lanyard, as the flag is raised, and leaves the flag holders hands, he should step back slightly, look at the raising flag, and salute as the rest of the participants.