Yes they do to put it simply if you mix dye remover + any color you'll get the color it was BUT it will look like it was a transparent overlay on the original color of the armor, like mine was the sacred monk armor it was originally beigeish I mixed silver and dye remover and it looked like the original silver but with a slight hue of the original beige in it, sorry for no comparison pic i thought i had one but the silver by it self has more of a blue hue than with the dye remover. Also the tats were done with orange + dye remover:
http://xs.to/xs.php?h=xs36&d=05271&f=gw083.jpg