>>Assumption: EVERY complete sentence is True or False.
>>
>>Then, logically looking at the sentence construction:
>>Ted [T and T = T] or [F and T = F] or [T and F = F] or [F and F = F]
>>
>>Ned unknown
>>
>>Fred All 3 sentences must be True or all 3 must be False because they are
>> separate sentences, unlike Ted's sentence.
>>
>>If Fred is Blue, then Ned is Blue and Ted is Red. If Fred is red, then Ned is red and Ted is blue. For Ted the combination of F [I'm Blue] and T [They're both red] is not a possibility. Likewise for the T and F combination. You are left with:
>>Ted [T and T = T] or [F and F = F]
>>
>>Ned unknown
>>
>>Fred [T and T and T] or [F and F and F] -- same as before
>>The given is there is at least 1 Red and 1 Blue man. If you assume that Fred could not have heard Ned as well, then you pick up Ted. Otherwise, you would pick up both Ned and Fred.
>
>Lets assume for a moment that Ned said either I'm Blue or I'm Red and not something unusual like I'm ... a hairy green gorilla. Don't assume there is at least one Red and 1 Blue man. We can also assume that Fred heard Ned but most importantly what color did Ned say he was. Once you have deduced that the rest falls into place.
>
>Dan

Ah, but the opening statement implied 1 of each: "Of these three men they were of two distinct types, the Blue that always tell the truth and the Red that always lie." So I assume there is at least one of one type and two of the other type.

The only thing Ned can say is "I am blue." Therefore, Fred's statement is true based on my logic above. So you pick up both Fred and Ned.