Could you provide a little more information so i can help drill into the problem for you? What isn't working right? The RadColorEditor is a simple, but powerful control that lets the user change the color of an item quickly and effortlessly.
To help provide you with as much information as possible, below is a link that will bring you to the control's overview.
From there you can expand as far down as the events the control can fire off (link below).
To answer your second question, the control doesnt save the image for you. However it does provide the means to add in a screen capture method and capture the image in a SelectedColorChanged
I hope this helps you. If not, please reply with more detail about what you're trying to do and what isnt working.