Colors in a console program?

#include <stdio.h>
#include <stdlib.h>
#include <conio.h>
#include <windows.h>
#define SETCOLOUR(a,b)  a<<4|b

/**
 * A programme demonstrating the use of colour nybbles for Windows
 * Tested using Code::Blocks and Windows 7 Professional SP1
 *
 * @Author:     Shaun B
 * @Version:	1.0.0.3 - 2012-09-12
 * @Todo:
 * @Changes:    Refactored with varibale names that might make sense
 *              Found an odd bug with the release build, which is now
 *              fixed.
 *
 **/

int main();
void gotoxy(int, int);
void hideCursor();

/// Sets variables for:
///     Running boolean -
static bool run = true;
///     Reusable variables -
static unsigned char index[2] = "";
static unsigned char count = 0;
static unsigned char xAxis = 0;
static unsigned char yAxis = 0;
static unsigned char character [2] = "";

int main()
{
    // Sets default console size, colours and title:
    system("mode CON: COLS=80 LINES=25");
    system("cls");
    system("title Demonstrating the use of colour nybbles Donkeysoft MMXII");
    system("echo off");
    HANDLE hConsole;
    // Switches off blinking cursor:
    hConsole=   GetStdHandle(STD_OUTPUT_HANDLE);
    hideCursor();
    // Sets cursor position for each scrolly text:
    gotoxy(0, 0);
    printf("For console applications, the colours are defined in a byte, so f0 would"
           "\ngive you white background and black text.\n");
    printf("Enter a byte in hex (00 - ff) to see what happens. Space to exit programme.\n");
    xAxis=  4;
    yAxis=  3;
    printf("C:\\>");
    // Main loop:
    while(run)
    {
        gotoxy(xAxis, yAxis);
        printf("²");
        // Scans keyboard into buffer:
        character[count] = _getch();
        if(character[count] == 32)
        {
            run=false;
        }
        else
        if(character[count] >= 48 && character[count] <= 57 && count < 2)
        {
            gotoxy(xAxis, yAxis);
            printf("%c", character[count]);
            index[count] = character[count]-48;
            xAxis++;
            count++;
        }
        else
        if(character[count] >= 97 && character[count] <= 102 && count < 2)
        {
            gotoxy(xAxis, yAxis);
            printf("%c", character[count]);
            index[count] = character[count]-87;
            xAxis++;
            count++;
        }
        else
        if(character[count] >= 65 && character[count] <= 70 && count < 2)
        {
            gotoxy(xAxis, yAxis);
            printf("%c", character[count]);
            index[count] = character[count]-55;
            xAxis++;
            count++;
        }
        else
        if(character[count] == 13 && count == 2)
        {
            gotoxy(xAxis-2, yAxis);
            printf("   ");
            unsigned char kCol = (unsigned char) SETCOLOUR(index[0], index[1]);
            SetConsoleTextAttribute(hConsole, kCol);
            printf("\nNew colour set to %3d!", kCol);
            xAxis = 4;
            count = 0;
            kCol = 0;
            index[2] = '\0';
            character[2] =  '\0';
            gotoxy(0, yAxis);
            printf("C:\\>");
            if(!run)
            {
                run = true;
            }
        }
        else
        {
            character[count] = '\0';
        }
    }
    system("color f0");
    system("cls");
    printf("Cheers!");
    // Returns when loop is exited:
    return 0;
}

// Sets co-ordinates within the command line:
void gotoxy(int x, int y)
{
    COORD coord;
    coord.X = x;
    coord.Y = y;
    SetConsoleCursorPosition(GetStdHandle(STD_OUTPUT_HANDLE), coord);
}

// Turns off blinking cursor:
void hideCursor()
{
    CONSOLE_CURSOR_INFO lpCursor;
    lpCursor.bVisible = 0;
    lpCursor.dwSize = 20;
    SetConsoleCursorInfo(GetStdHandle(STD_OUTPUT_HANDLE),&lpCursor);
}

/** This routine is no longer needed, replaced with the pre-processor symbol at the top.
unsigned char setColour(unsigned char a, unsigned char b)
{
    if(i[0]!=a && i[1]!=b)
    {
        // Just in case there's an odd error...
        return -1;
    }
    else
    {
        // Bitwise shift a four bits and then 'or' with b
        return (a<<4)|b;
    }
}*/