How well can babies see colors? I read somewhere that at first they really only see black and white. How soon can they see other colors?

Right away.  Have never heard anyone claim they can only see black and white when born.  That black & white plus shades of each is true in some animals but not humans.  Grandpa Dave

From what I've read babies can see fine when born, they just can't process it as well yet.  At first black and white patterns will catch their attention more because the contrast is easier for them to process.  Then human faces will be of interest.  This article really explains it all very well though, http://www.babycenter.com/0_developmental-milestones-sight_6508.bc.