Sorry! It used to work, but it's an old project and it's all broken in the newer version of Scratch. :(
Holy cow. I went away for a few weeks, and missed all the action. Thanks for the comments, everyone! Hit flag to start. Enter an interesting word (15 letters max). Colors and jitter are random each time, so try again for new colors. Works best in turbo mode (switch to flash player, shift-click flag) The main trick is that one sprite reads B&W pixels in another sprite and uses that info to draw bigger, colored, fuzzy, etc.