Re: creating .dvi/.pdf's w/ tetex 3.0

> \usepackage[pdftex]{color}

This switches to pdf mode if you are using a pdf*tex engine, because
the pdftex option invokes pdftex.def which sets \pdfoutput=1.

The solution is to load the color package without specifying a
driver. teTeX comes with a clever color.cfg, so the color package with
automatically load the right driver.

Since pdftex misses a color stack, you might see some bad suprises by
using color.sty with pdftex. Heiko Oberdiek has written the pdfcolmk
package to get around most limitations. So, I suggest to use
  \usepackage{color}
  \usepackage{pdfcolmk}

If you want to avoid a warning by using pdfcolmk in dvi mode just use
  \usepackage{ifpdf}
  \usepackage{color}
  \ifpdf
    \usepackage{pdfcolmk}
  \fi

Thomas