Robert,
1. If you are going to be editing EDDs, you should be familiar with the Structured Application Developer's Guide and corresponding Reference Manual. To find the latest versions, go to adobe.com, search for FrameMaker, click Get Help and Support and then follow the appropriate links in the list of online documents on the right.
2. Find the element definition for <note> in commonElements. In the text format rules, add the context rule:
If context is: [type = "caution"]
Default font properties:
Color: Red
3. As shipped, the text insets in the DITA EDDs are set to update manually, not automatically. Unless you've changed the settings, you'll need to open each EDD you use and update its text insets. I don't remember whether if there are nested text insets you have to update each level separately.
4. Once the EDDs are updated, you'll need to import element definitions from the EDDs into the associated templates or any existing FrameMaker documents.
--Lynne