I set up a snipe by entering the item number, clicking snipe, putting a check in that box, and entering my maximum amount. The FAQ said it should change colors, but its the same. Does this matter or is my snipe inactive as of right now.

Also, do I need the program running when the snipe is supposed to take place?

And if I'm the only bidder, does my bid still increase by a 50c increment or will it stay the same after the time the snipe should have taken place?

Thanks in advance.

Are you talking about the software or Web-based interface?
Changing colors in FAQ is for Web-interface mainly.

If you are talking about the software, then if you see your snipe amount in "My Bid" column, that means it's activated.
You don't have to keep the software running after snipe is activated:
http://www.myibay.com/login/faq/2/#q9

The bid increment depends on the current bid:
http://www.myibay.com/login/faq/4/#q14