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I think you should use standard colors when using chips, so yes a red will count for 5 in a cash, or tourney setting. Keeping consistent helps the players know how much each chip is worth imho.
A-hahahahahahahaha! Standard colors? In the Bay Area? Let me go over the various dollar chips I know about from different rooms... lessee, light blue, green, purple... oh yeah, I think Lucky Chances might use white.
I did agonize long and hard about using standard colors, but I didn't like the "balance" of colors as it looked on the table while using chips below $1. It's a minor subtle thing, but it makes a difference. You want the chips to be nice to look at all piled up on the table. Compared to the saturation of the reds, blues, and greens, the whites seemed too "off" and weak-looking for the primary chip in play. I also like $20 chips, as I prefer my chips to relate to real world denomination values. Nobody carries $25 bills around.
Okay, so once my 'standard' color thing didn't look right, I tried to have one set of colors for cash (quarters, dollars, fives mostly) and tournament (twenties, hunnies, etc) with overlap on the same denominations. Again, couldn't get both to have combinations that worked without using the same color in drastically different spots. Because in tournies, there's also the consideration of how the colors look as chips get colored up and new colors are brought into play.
So even though the values are off by two orders of magnitude, I decided to use the first three chips as the same colors in both tourneys and cash, to eliminate any sort of confusion. In cash, that's $.25 yellow, $1 purple, $5 green. In tournament, that's T20 yellow, T100 purple, T500 green. There's been surprisingly little confusion regarding the 1/4 and 1/5 switch you get with yellows between the games.
Yeah, so, in the end I decided that since no rooms around here use anything close to standard, I went with chips that I like to look at when they're all piled and stacked up together. It's a subtle thing, but every now and again someone will comment on just how well the chips work together, and I know it was worth it. Colors affect people, and my cash game colors seem to affect them in good happy ways.
I told you not to talk to me about chips, gol-dangit.
But this is the sort of thinking that goes into all my decisions here. PLEASE don't get me started on my blind schedule...