Oh, I think the version of Never-Ending Story that I read from the school library had the red and green letters! Though the cheap paperback version I later found secondhand so I could have my own copy is, well, the cheap paperback version, though it does have the illuminated capitals. This also reminds me a little of our discussion of people who would be surprised to read the original Little Mermaid after being brought up on Disney, because I did see the movie first and read the book later because I'd seen the movie, and was like, goodness, this is very different! and the movie was missing basically all the profound parts of the book?? (That being said, I confess I do have a soft spot for the movie, having seen it as an impressionable child before I read the book. I suspect it wouldn't hold up nearly as well, though (I haven't seen it since I was a kid).)

Having just watched Babylon 5, I can confirm that it's dated (Anna's HAIR!) but holds up very well!