Problem persists? Your Objector/Flair colors still not working? Follow these 2 steps to make sure you did everything right.
1. Check your image's attributes. Is it a PNG? Is it correctly named (flair_template_guide for flairs, paper_overlay for Objectors)? Is the size 128x128? And most important, is it in the folder steamapps\common\team fortress 2\tf\custom\my_custom_stuff\scripts\items\custom_texture_blend_layers ? If not, fix this immediately.
2. Do the colors work on your Flair, but they look kind of washed out? Skip to 3:48 in the video where an annotation explains how to fix this.