Actually, this is 2 questions related to each other. 1. I want to change the color of my cut layer (in this case) from 00Black to 02Red. And 2. I saw in a tutorial (not sure which one) that you can permanently assign a color to a layer (such as red) that will automatically make it a cut layer. Do I have this correct or did I misunderstand what was being said?
Setting or changing the desired processing of any layer is accomplished in the ‘Cuts / Layers’ window and / or the ‘Cut Settings Editor’ window. You can read more here:
Cuts and Layers
Cut Settings Editor
You certainly do. 
The following is also worth review:
Layer Defaults
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