Everything you read is true! This Grinch is yellow and drab. The disk lacks the wonderful bright colors that everyone has a right to expect when buying the DVD version of a TV special they could see every year for free. Not that there is anything wrong with original--it's fabulous, 5-stars as far as Christmas specials go. But this version is thoroughly ruined by bad mastering. Wait for the re-release. Don't get caught! The correction is probably on its way and you can be sure they won't sneak it out--it will have new packaging, probably some new extras, and be clearly marked "remastered".
If you own the DVD and have your doubts (some reviewers seem to), try this: Take a look at the documentary extra hosted by Troy McClure. Throughout the documentary, they run clips of the Grinch in the background where the color is RIGHT! A beautiful bright-green Grinch--just like you remember. Compare that to the main feature (the thing you actually paid for), where he is washed out and nearly yellow.
After living 15 years in Denmark I really came to miss some of the Christmas specials from my youth in the USA. I suppose anybody in the US with cable gets quite sick of these, but for me, the Grinch and Charlie Brown's Christmas were always an important part of building the Christmas spirit. Well, the spirit here seems to be all about greed and incompetence; sell the defective version this year, then sell the corrected version to the same people next year.