It will make green and blue prompt on all tty's and Eterm, xterms, etc.. everywhere where Bash is running, and in case you are root, the prompthwill be RED to let you know you are ROOT. I think muhri.net has some more explantions on this, in the tips section. So the font color will not be green, but the prompt will look like this:
--(Sun Sep 8, 14:42:57)--(nskl@SlackBox:~)$ and all letters will be blue, while the brackets will be green.
Also you might want to take a look at BASH customization howto, and PS1 and PS2 environment variables. Hope that helps