Older files where I've changed the horizon color it seem to work fine and I can adjust it, but if I start new with the startup file and change the world's horizon color it stays grey. I can't seem to find a changed setting anywhere, and this only happens in the game engine works fine in render. How do I fix it? Thanks!

Is the shading next to the mode menu set to textured? Many color options will not work unless that is in the Texture mode.
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That was it! Thanks mucho!