Imported image colors

Having display color issue with imported 3DS images. Switched face type but nothing works. I can see component groups when I select X-ray but this is a horrible view to select a group to edit.

How do I change the overall image color?

Share the SketchUp file so we can see what you are working with. What version of SketchUp are you really using? Your profile says SketchUp 8 Free (web) but there is no such version.